Another safe-havencurrency, the Swiss franc, also gave up knee-jerk gains .
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Gold's two-way bet - both safe-havencurrency and speculative punt - looks to be ending.
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To some analysts, the dollar has not been moving like a safe-havencurrency at present.
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The safe-havencurrency was pushed down by signs of progress in talks between South and North Korea.
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Meanwhile, the Japanese yen, largely considered a safe-havencurrency, strengthened 0.12 percent.
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Other currencies may also be better-placed, particularly the Swiss franc, which may now be the favoured safe-havencurrency.
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The euro drifted to its weakest level since its 1999 launch against the Swiss franc, deemed a safe-havencurrency.
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Other currencies may also be better placed, particularly the Swiss franc, which may now be the favored safe-havencurrency.
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The yen is a safe-havencurrency and tends to move in the opposite direction to riskier assets like stocks.
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The yen is regarded as a safe-havencurrency by virtue of Japan's status as the world's biggest creditor nation.
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The move over the last fortnight marks the biggest two-week build-up of bets against the traditional safe-havencurrency since 2009.
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The yen, another safe-havencurrency, was steady against the dollar, fetching 109.64 in early trade.
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The Japanese yen was on track for its largest daily gain since May 2017 as investors moved into the safe-havencurrency.
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The dollar also rallied against the Swiss franc CHF=, touching its highest against the world's other reputed safe-havencurrency since Nov. 1.
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Concerns about a possible shift away from Abe's expansionary economic policy, known as Abenomics, drove the move in the safe-havencurrency, investors said.
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Merk believes as the BoJ continues to ease, this may be the beginning of the end for the yen as a safe-havencurrency.