The dollar was flat against a basket of currencies on Thursday as low U.S. bond yields offset in-line data on domestic jobless claims and home prices, keeping it close to the one-month peak it reached earlier this week.
The garnered some safe-haven demand on initial weakness on Wall Street and softness in other major stock markets.
The Norwegian crown and the New Zealand dollar were the notable gainers in a quiet trading session after their countries' central banks showed confidence in their economic outlook. The dollar had strengthened following the Federal Reserve's decision to raise U.S. interest rates last week and leave the door open for another increase.
The bounce faded as doubts crept in as to whether the modest current economic expansion warrants further rate increases and while the Fed plans to shrink its $4.5 trillion balance sheet.
"The market has not bought into the Fed's hawkish rhetoric," said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. "The market is dubious about U.S. growth in the second half of the year. That's having a mild negative effect on the dollar."
The U.S. bond market has reflected traders' doubts as the yield curve on Wednesday flattened to levels not seen in nearly a decade. The yield curve stabilized on Thursday in reaction to reports showing a continuing tight labor market and home prices that appreciated in April more than what traders expected.
An index that tracks the dollar against six major currencies was 0.04 percent higher at 97.60. It reached an one-month high of 97.871 on Tuesday.
The euro was 0.18 percent lower at $1.1146, while the dollar was fractionally weaker at 111.36 yen.
Among other currencies, the Norwegian crown rose after Norway's central bank lifted its rate forecasts for 2017 and 2018 and said a rate cut was no longer likely.
It was last up 0.55 percent at 8.4826 crowns per dollar and up 0.6 percent at 9.4670 crowns per euro. Meanwhile, the kiwi rose 0.7 percent to $0.7267 after the Reserve Bank of New Zealand rang several upbeat notes in its outlook for growth and impact of current exchange rates.