The euro slipped on Wednesday, pulling back from a three-year high above $1.23 as some European Central Bank officials voiced worries about the currency's strength.
The euro's decline helped stabilize the greenback, which held its modest losses against a basket of currencies on Wednesday even as the Federal Reserve's latest Beige Book showed U.S. business activity was expanding with inflation growing at a modest to moderate pace in late 2017.
The outlook for the dollar remains dour on the view that other central banks besides the Federal Reserve are moving away from the ultra low-rate stance and unconventional tools they adopted after the 2008 global credit crisis.
"There's still a lot of bearish sentiment on the dollar," said Minh Trang, senior foreign currency trader at Silicon Valley Bank in Santa Clara, California.
Still, the greenback snapped a four-session losing streak.
The Canadian dollar fell 0.39 percent to C$1.2385.
The euro was up 0.01 percent at $1.226 after hitting a three-year peak versus the greenback at $1.2322, Reuters data showed.
Digital currencies suffered another day of heavy losses on worries about a widening regulatory crackdown.
Bitcoin fell more than 10 percent to below $10,000 for the first time since Dec. 1 on the Luxembourg-based Bitstamp exchange. The biggest digital currency has lost half its value since it peaked near $20,000 about a month ago.