On Thursday, dollar ceased to decline against other major currencies, rebounding from a three-week low after data showed that the number of initial applications for unemployment benefits in the US fell last week more than expected.
The dollar was steady against the yen; USD/JPY pair was traded at 119.93.
The US Labor Department said the number of Americans who first applied for unemployment benefits for the week ended October 3 fell 13000 to 263000 from the revised downward level of 276000 from the previous week.
Currently, market participants are expecting the publication of minutes of the last meeting on definition of monetary policy by the Federal Reserve later today to find additional guidance on the course of the central bank for the near future.
Meanwhile, the yen remained under pressure on expectations that the Bank of Japan may ease monetary policy in the course of its October meeting.
On Wednesday, the Bank of Japan kept monetary policy unchanged, although recent economic reports pointing to weakness in the Japanese economy, increased pressure on the bank to adopt fresh measures to enhance growth.
Earlier on Thursday, data showed that the volume of orders for machinery and equipment in Japan unexpectedly fell in August, indicating a decline in manufacturing activity.
The greenback was also steady against euro; EUR/USD is traded at 1.1244.
The dollar edged higher against the pound, GBP/USD pair falling 0.29% to 1.5272, and it also fell against the Swiss franc: USD/CHF fell 0.18% to 0.9719.
Earlier on Thursday, the Bank of England said that it keeps interest rates unchanged at 0.50%, which was an expected decision.
The rate remains at this level since March 2009. The central bank also said that leaves the amount of QE program at 375 billion pounds.
According to reports, the future of interest rates in the next few years will depend on the current economic situation.
The Australian and New Zealand dollars showed losses: AUD/USD went down 0.43% to 0.7176 and NZD/USD pair fell 0.27% to 0.6593.
Meanwhile, USD/CAD pair fell 0.09% to 1.3070.
The USD index, which shows the relationship of the US dollar against a basket of major currencies, was kept unchanged at 95.70, rebounding from three-week lows 95.17, reached earlier in the session.