The dollar weakened on Thursday, falling sharply versus the euro amid increased risk appetite and hawkish signals from European Central Bank.
Following yesterday’s better-than-expected euro zone GDP report, ECB President Mario Draghi hinted that policy makers have no plans for further monetary stimulus.
The ECB this morning kept its benchmark interest rate unchanged at a record low 0.25 percent.
Also today, the Bank of England maintained its rate at an all-time low of 0.5 percent and its bond-purchase plan at 375 billion pounds.
Traders also considered data showing U.S. initial jobless claims fell sharply last week to their lowest level in three months.
The buck dropped about 1 percent to $1.3850 versus the euro after treading water earlier in the week.
The dollar fared a bit better versus the sterling, easing fractionally to $1.6750.
Late morning gains helped the dollar rise to Y102.90 versus the yen, but the pair remains locked in a stubborn trading range.
All eyes tomorrow will be on the crucial monthly jobs report from the U.S. Labor Department.
Economists predict Friday’s monthly jobs report will show the unemployment rate remained at 6.6 percent in February.
Markets may take a poor jobs report in stride, blaming unusually cold winter weather across much of the U.S.