The British pound stepped back from two-month highs on caution over whether the European Union and UK can reach a Brexit deal at their current summit while the New Zealand dollar jumped to three-week highs after strong domestic GDP data.
The dollar index dipped 0.1 percent to 94.467 , near its seven-week low of 94.308 touched on Tuesday, as its more risk-sensitive rivals held firmer.
The euro traded at $1.1683, up 0.1 percent and not far from peaks in August and September around $1.1730.
The British pound last fetched $1.3149 , off its two-month high of $1.3215 in the previous session.
The yen changed hands at 112.14 to the dollar, staying close to a two-month low of 112.445 touched on Wednesday.
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• EUR/USD Technical Analysis: Remains on consolidation, supported by 1.1650
The EUR/USD pair found support at 1.1650 and bounced to the upside, holding in a consolidation range, moving sideways in the short-term.
A break under 1.1650 could change the short-term bias to the downside, exposing 1.1600 (before that level, support is seen at 1.1625).
As long as EUR/USD holds above 1.1650 (horizontal level and short-term uptrend line) another test of 1.1720 could take place. Above the next strong barrier is seen at 1.1745/50, a medium-term resistance that if broken would clear the way to more gains.
• China plans to reduce the average tariff rate on imports from most of its trading partners as soon as October, Bloomberg News reported on Thursday.
In July, China cut import tariffs on almost 1,500 consumer products ranging from cosmetics to home appliances as part of efforts to open up its economy, the world’s second biggest.
The move was in line with Beijing’s pledge to its trading partners - including the United States - that it would take measures to further increase imports.
The Bloomberg report did not specify the countries that could enjoy lower Chinese tariffs.
• China hopes the United States will show sincerity and take steps to correct its behavior, its commerce ministry said on Thursday, after both countries slapped new tariffs on each other’s goods this week in an escalating trade war.
• China's economy, much more vulnerable to exports, is likely to take a bigger hit than the U.S. from the escalating trade war.
"If you put tariffs across the board on both countries...it's a four times bigger hit to China because they export four times as much as they import," said Ethan Harris, head of global economics at Bank of America Merrill Lynch.
• A British lawmaker in Prime Minister Theresa May’s Conservative Party has said that it is delusional to think that the eurosceptic wing of her party will back her proposals for leaving the European Union, The Telegraph newspaper reported.
• The United States said it was ready to resume talks with North Korea after Pyongyang pledged on Wednesday to dismantle its key missile facilities and suggested it would close its main Yongbyon nuclear complex if Washington took unspecified actions.
U.S. Secretary of State Mike Pompeo said he had invited North Korea’s foreign minister to meet in New York next week, with the aim of completing its denuclearization by January 2021, after a Pyongyang summit between the leaders of the two Koreas.
• Oil rose for a third day on Thursday amid another drawdown in U.S. inventories and strong U.S. gasoline demand, while signs OPEC may not raise output to address shrinking supplies from Iran also supported prices.
Global benchmark Brent crude LCOc1 was up by 26 cents, or 0.3 percent, at $79.66 by 0611 GMT, after gaining half-a-percent on Wednesday.
U.S. West Texas Intermediate crude CLc1 was up 60 cents, or 0.8 percent, at $71.72 a barrel, after rising nearly 2 percent the previous session.
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