The U.S. dollar was on track for its biggest one-day gain against the euro in a week on Thursday after traders reestablished bullish bets on the dollar following recent weakness in the currency.
Analysts said traders stepped in to repurchase the greenback after the euro hit $1.10525 earlier in the session, its highest since it hit a nearly two-week high of $1.10625 on March 18 following the U.S. Federal Reserve's latest policy statement.
Investors "have been looking for better levels to establish their dollar longs," said Aroop Chatterjee, currency strategist at Barclays in New York. "This is probably a good level to do that."
The greenback has given back some gains in the wake of the dovish Fed statement after rallying about 25 percent against a basket of major currencies from early May through March 17. The rally was largely on the view that the Fed could hike interest rates early as June.