On Thursday, the dollar cut losses against the basket of currencies after data showed that the number of initial applications for unemployment benefits in the US last week fell more than expected.
The US Labor Department reported that the number of initial applications for unemployment benefits for the week ending May 30 fell by 8 thousand, up to 276 thousand, from a revised 284 thousand the previous week. Analysts had forecast a decrease of 5 thousand, up to 279 thousand.
The report came after data on Wednesday, which showed that the level of employment in the private sector in the US rose in May to 201 thousand, above the expected 200 thousand, indicating that the recovery in the labor market persists.
Investors took a wait on the eve of the publication of government data on employment in the US non-farm payrolls on Friday to receive further guidance on the strength of the US labor market.
The USD index, which measures the American currency against the basket of six major currencies, was down 0.15% to 95.21 after a two-week low of 94.68, reached early in the session.
The EUR/USD rose 0.19% to 1.1297 after a 2.5-week high of 1.1380 yesterday.
The euro strengthened as the yield on 10-year bonds in Germany jumped to its highest level since September, closing the gap with their American counterparts.
The yield on German bonds serves as a reference point for European financial markets, and the growth of profitability increases the euro against the dollar. Yield increases as the price drops.
The ECB revised its inflation forecast for this year to 0.3% from 0%, and said that the inflation rate is expected to continue to grow in 2016 and 2017.
However, sentiment on the single currency remained vulnerable after yesterday's talks between Prime Minister Alexis Tsipras of Greece and President of the European Commission, Jean-Claude Juncker, took place in Brussels, ended with the absence of agreements needed to unlock a large financial assistance before Greece end funds to repay debt.
The pair GBP/USD added 0.24%, to 1.5378.
Yen is stable, the pair USD/JPY is at 124.27, while the pair USD/CHF fell 0.10% to 0.9331.
The Australian and New Zealand dollars weakened; the pair AUD/USD fell 0.78% to 0.7725, and the pair NZD/USD lost 0.17% to 0.7140.
Earlier on Thursday, the Australian Bureau of Statistics said that retail sales remained unchanged in April, confounding the expected growth of 0.4%.
A separate report showed that Australia's trade deficit rose in April to $ 3.88 billion from $ 1.23 billion in March.
Meanwhile, the pair USD/CAD rose 0.15% to 1.2471.