The dollar slipped lower against a basket of the other major currencies on Thursday as the euro regained ground after retreating from a three year peak in the previous session.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% to 90.51 by 03:24 AM ET (08:24 AM GMT), off an overnight high of 90.77.
EUR/USD was up 0.2% at 1.2209. The euro pulled back from a three year high of 1.2323 on Wednesday after comments by European Bank officials reflected unease over the currency’s recent strong gains.
The euro has strengthened broadly since last week’s minutes of the ECB’s December meeting boosted expectations that policymakers are preparing to wind down their bond buying stimulus program.
The dollar has been pressured lower by the view that the global economic recovery will outpace U.S. growth and prompt other major central banks, including the ECB to begin unwinding loose monetary policy at a faster pace.
The dollar edged lower against the yen, with USD/JPY dipping 0.12% to 111.18 after ending the previous session with gains of 0.81% when it bounced from a four month trough of 110.18.
Sterling was steady, with GBP/USD trading at 1.3838, after rising as high as 1.3941 on Wednesday, the highest level since Britain’s vote to exit the European Union in June 2016.
The pound pulled back as investors took profits and awaited the latest Brexit developments.
The Australian and New Zealand dollars were broadly higher against their U.S. counterpart, with AUD/USD up 0.2% to 0.7983 and NZD/USD climbing 0.43% to 0.7299.
The commodity linked Aussie and kiwi were boosted after data overnight showed that China’s economy grew at a faster than expected pace in the fourth quarter, helped by strong export growth and a rebound in the industrial sector.
