The US dollar was slightly gloomy in the European session as the market continued to evaluate the results of the latest meeting of the Federal Reserve (Fed) which has kept interest rates unchanged.
Although interest rates were left unchanged, the market remained uneasy after the Fed signaled two more hikes this year.
The move, which was seen as a 'hawkish hold', provided some support for the US dollar to prevent further slippage after falling to a four-week low.
However, it was seen failing to rise higher in the European session with the dollar index hovering around 103.14 against a basket of major currencies.
US retail sales data, the Empire State manufacturing index and jobless claims are now the next focus for investors in the New York session.
Also in the market's focus is the European Central Bank (ECB) policy meeting which is expected to raise interest rates by 25 basis points.
Ahead of the meeting, the euro traded slightly higher around a four-week high against the greenback.
The pound also strengthened despite retreating slightly from its one-year high as markets now expect the Bank of England (BOE) to raise rates next week.
Elsewhere, the Aussie dollar strengthened to a four-month high, while the kiwi dollar eased slightly as prices continued to be pressured by data showing New Zealand slipping into recession.
Also, the yen slipped further to a seven-month low on higher US bond yields and expectations the Fed will continue its hike.
While the Bank of Japan (BOJ) is expected to continue to maintain its dovish stance at tomorrow's policy meeting.
