The U.S. dollar slid Thursday after President Donald Trump said his warning to to bring "fire and fury" on North Korea may not have been tough enough.
The dollar index, which tracks the greenback against six rival currencies, was down 0.16 percent at 93.40. The dollar also continued its slide against against the yen, falling as much as 0.81 percent. It was last down 0.04 percent at 109.16 yen.
The euro, meanwhile, was flat after initially surging 0.11 percent following Trump's comments. It remains the best-performing G10 currency so far this year with gains of more than 11 percent against the dollar.
Earlier in the day, the dollar slipped to an eight-week low against the Japanese yen, as continuing tensions between the United States and North Korea led investors to look for assets viewed as less risky.
"The yen is the big story really. Risk aversion is still very much a concern for markets," said Shaun Osborne, chief currency strategist, at Scotiabank in Toronto.