The euro recovered from a 11-month low against the dollar, helped by better-than-expected German private sector growth data.
U.S. housing starts surged past expectations in July, snapping two straight months of declines.
The US dollar rose against a basket of major currencies on Monday on reduced concerns over Russia and Ukraine and positive US housing data.
The dollar failed to get a safe-haven boost despite news that the Ukraine-Russia conflict had entered a potentially dangerous phase.
A robust U.S. 30-year bond auction supported Treasuries prices in general and weighed on yields, which has underpinned the greenback, analysts said.
The British pound also falls on inflation, wages data, and the yen is subdued after Japan's Q2 GDP contraction.
The euro fell towards 9-month lows against the dollar on Tuesday, as investors positioned for a weak German sentiment survey.
The Norwegian crown hit a seven-week high against the euro after Norway reported consumer inflation unexpectedly jumped in July.
The euro gained against the dollar and sterling, and investors flocked to the Swiss Franc and yen as Obama approved air strikes in Iraq.
The yen came under pressure from Japan's plans to increase its pension allocation to the domestic stock market.
The dollar held near an 11-month high, supported by upbeat U.S. data, while the New Zealand dollar took a hit from a fall in dairy prices.
The US dollar extended a rally after an 8-1/2 year high in services growth and a bigger-than-expected increase in factory orders.
The euro headed back below $1.34 on Tuesday after a survey of Italian service sector purchasing managers disappointed on the low side.
The dollar hovered around 10-month highs ahead of U.S. jobs data on Friday.
The U.S. dollar edged higher against a basket of major currencies on Thursday after labor market data fueled expectations for a hawkish Fed.
The dollar rose against a basket of currencies on Wednesday, after the Fed announced it will cut its asset buying program by another $10 billion.
Fears over Ukraine unrest and an upcoming slew of US data are also pushing some currencies slightly down against the dollar.
With the resurgent greenback set to react further to economic data coming from the U.S., many analysts have argued that sterling has reached a tipping point.
The dollar fell slightly against the euro ahead of Wednesday's release of US gross domestic product growth and a Fed policy announcement.
The euro struggled to hold above eight-month lows against the dollar on Friday, hurt by a dive in Germany's Ifo survey of business sentiment.