Closer to the release of US inflation data tonight, the US dollar retreated further from its European session highs.
At the time of writing, the dollar index which measures the greenback's performance was trading lower at 102.17 against a basket of major currencies.
The US consumer price index (CPI) is projected to rise to 3.3% year-on-year in July, slightly stronger than the 3.0% post in June.
Following the depreciation of the greenback, most major currencies began to take the opportunity to post gains.
The euro climbed higher from its lows to trade at around 1.1020 against the US dollar at the start of the European session.
While the pound currency also recorded an increase by trading higher at around the price of 1.2760 compared to the greenback.
UK gross domestic product (GDP) data for July will be the focus of pound currency investors tomorrow (Friday).
On the other hand, the Aussie and New Zealand dollars also rose but moved not far from their respective two-month lows.
Additionally, the Canadian dollar continued to strengthen against the US dollar, supported by world crude oil prices rising to new highs.
Despite falling against most major currencies, the currency king managed to conquer a one-month high against the yen.
It followed Japan's Producer Price Index (PPI) data which rose 3.6% year-on-year in July, down from 4.1% in June but slightly higher than market expectations of 3.5%.
