The dollar slid from its 14-year-highs against its major rivals on Thursday as forex traders booked profits ahead of holidays and a big batch of U.S. economic data due later on Thursday.
The dollar index, which measures the greenback against six major rivals, fell below the 103 mark. It has pulled back from the 103.65 hit on Tuesday, its loftiest peak December 2002.
Still the dollar's demise was limited as the Federal Reserve signaled more frequent rate hikes in 2017, partly on expectations for faster economic growth under the incoming Trump Administration.
EUR/USD rose to 1.0456 overnight and is now sitting 0.1 percent higher by 1.0436. The pair bounced from 1.0352 on Tuesday, the lowest since January 2003.
The single currency could come under renewed pressure as investors contemplate the future of the struggling Monte dei Paschi di Siena, Italy's third largest lender.
The world's oldest bank has all but failed to pull off a last-ditch private sector rescue plan, making a state rescue for look inevitable, sources said on Wednesday.
The greenback stood at 117.65 versus the yen, receding from 10-1/2 month high of 118.66 yen set last week.
