The giant US dollar continued to trade lower in the European session as the market's focus now shifted to the release of US producer inflation data.
Against a basket of major currencies, the dollar index traded at 103.62, after falling from the 104.00 level it reached on Wednesday, for the first time since early January.
Earlier, US retail sales data was published showing a sharp jump in January after two consecutive monthly declines.
It initially provided support for the currency king to rise, before cutting back on gains as it entered the day's trade.
The next focus for investors is the release of the US producer price index (PPI) data in the New York session which is expected to increase in January.
Tracking broader currency movements, the Aussie dollar continued to recover losses posted after seeing dismal Australian jobs data.
Data released showed that Australian employment fell for the second month in a row last month with the unemployment rate jumping to an 8-month high.
In addition, the euro and the pound traded slightly higher after each plunged to record lows against the US dollar.
The yen, on the other hand, remained weak with a flat move in the European session, as investors awaited confirmation of the new governor of the Bank of Japan (BOJ).
