The rally in British pound pushed the dollar off its recent high on Thursday. The dollar index .DXY sank 0.27 percent to 96.867.
The greenback has recently suffered a surge after impressive economic reports, including numbers last week which showed the U.S. economy slowed less than predicted in the third quarter.
The euro gained 0.3 percent to $1.1343, getting a relief after skidding to $1.1302 in the previous session, its trough since mid-August. The common currency has been dragged down by weaker-than-expected economic data from the euro area.
The Aussie leaped 0.75 percent to $0.7125 after solid internal trade data helped offset some of the worries over slowdown in China's economy - Australia’s largest trading partner.
China’s yuan firmed to 6.9668 a dollar in onshore trade, but it was still near a decade nadir at 6.9780 touched the previous session on trade war concerns and slowing Chinese growth.