U.S. bond yields climbed on the back of expectations of broadly higher inflation, driven by a 5 percent rise in global oil prices.
The ECB's extension of its easing program drove the single currency to its biggest daily loss against the dollar since the Brexit vote.
The euro fell Thursday as the European Central Bank announced an extension of its quantitative easing programme.
The euro gained slightly on the dollar on Wednesday as investors focused on Thursday's European Central Bank meeting.
Tokyo sell order flood helped drive sterling to 31-year low, says BoE.
Bets on market volatility stayed close to their highest since June's Brexit vote ahead of this week's European Central Bank meeting.
The euro recovered from against the dollar after Renzi's loss in a referendum over constitutional reform was seen as largely expected.
The dollar fell Friday after posting gains the last three weeks as a solid, but not spectacular, U.S. payrolls report spurred doubts.
The dollar on Thursday lost ground as traders booked gains following a solid November and caution ahead of Friday's payrolls report.
Sterling jetted to an almost three-month high in trade-weighted terms on Thursday, adding to its biggest monthly gains against the euro since 2009.
The U.S. hit highs on Wednesday and after a surge in oil prices pushed U.S. Treasury yields higher.
RBS, Standard Chartered and Barclays all failed the Bank of England's stress tests to cope with another financial crisis.
John Redwood, chief global strategist at Charles Stanley, sought to calm Brexit fears, asserting that "nothing is happening."
The dollar fell on Tuesday as the greenback consolidated its position against most major currencies following a roller-coaster 24 hours
The dollar edged down on Monday, surrendering some gains after a sharp rally that followed Trump's surprise victory.
The dollar retreated against its major currency peers, a pullback in U.S. bond yields spurring some profit-taking.
The dollar climbed past more of last year's peaks against the euro, pushing towards the parity that banks are saying is on the cards.
The UK economy needs a push, says Fredrik Erixon at the European Centre for International Political Economy.
The dollar rose to around a 13-1/2-year peak on Wednesday after stronger-than-expected U.S. economic data.
Phillip Hammond, U.K. finance minister, announces his decision to abolish the traditional spring budget announcement.