The dollar fell for a second straight session on Thursday, as investors continued to pare back hefty positions ahead of an all-important U.S. non-farm payrolls report that could disappoint those with a bullish view on the greenback.
A Reuters poll expects non-farm payrolls to rise by 245,000 jobs in March, after gaining 290,000 in February, but many in the market are bracing for a weak number. Economists at major banks though have not changed their forecast on jobs despite an underwhelming report on U.S. private sector employment released on Wednesday.
"This is just positioning ahead of payrolls and the fear is that payrolls could come in weaker than expected," said Vassili Serebriakov, currency strategist, at BNP Paribas in New York.
Investors also took profits on recent greenback strength heading into the long Easter holiday weekend.