Data released by the US Department of Commerce, on Wednesday, showed that US retail sales rebounded sharply in January, after declining for two consecutive months, driven by purchases of cars and other goods.
The US retail sales data came just one day after the release of figures showing inflation has slowed while it remains firm.
The dollar index fell 0.1 percent to 103.73 points, after touching a six-week high of 104.11 points on Wednesday.
The euro rose 0.2 percent to 1.07095 points against the dollar, after hitting a six-week low earlier this week.
The British pound rose 0.1 percent to 1.20465 points against the dollar, after falling more than 1 percent on Wednesday.
Data released on Wednesday showed British inflation slowed more than expected in January, and there were signs of easing price pressure in parts of the economy that the BoE is watching closely.
The Bank of England has already signaled that it may hold off on raising interest rates in March, and inflation data released on Wednesday reinforced those expectations.
The Japanese yen increased 0.2 percent to 133.91 against the dollar, and 0.1 percent to 143.3 against the euro.
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