Increased political tensions on both sides of the Atlantic - an unfolding effort by US congressional Democrats to impeach President Donald Trump and ongoing uncertainty linked to Britain's divorce from the European Union - was, however, likely to keep the greenback in demand, analysts said. The euro was 0.16% higher against the dollar at $1.0959, after falling as low as $1.0923, its weakest since May 2017.
Despite the opening of an impeachment inquiry into US President Donald Trump this week and mixed signals on a trade deal, the dollar has remained resilient. It has been in demand both as a safe-haven when investors become nervous, and also when a deal with China - and a boost to the global economy - seems within reach. The US dollar remains king and the barrage of headlines from all over the map have only served to solidify that stance, Brad Bechtel, global head of FX at Jefferies, said in a note.
The dollar index, which measures the greenback against a basket of other currencies, was down 0.16% at 98.874. Earlier this month it hit a high of 99.37, its strongest since May 2017. On Wednesday the index jumped 0.7%, its largest one-day rise in about three months.