The dollar rose as investors raised their outlook on a faster pace of U.S. rate increases following comments from Fed Chair Janet Yellen.
The dollar hit a two-week high against the yen with another round of solid gains as investors focused again on the U.S. reflation trade.
The dollar gained in part on expectations of a constructive meeting between President Donald Trump and Japanese Prime Minister Shinzo Abe.
The New Zealand dollar was by far the biggest faller among major currencies on Thursday.
The dollar fell pressured by the decline in U.S. Treasury yields as investors have priced out a March rate hike by the Federal Reserve.
President Trump is likely to take an aggressive approach to the yen when he meets Japanese Prime Minister Shinzo Abe.
The dollar climbed to a more than one-week high on Tuesday as it gained for a fifth straight session.
The euro fell to a one-week low against the dollar on Monday on concerns over French politics ahead of the presidential vote.
The dollar fell after the employment report showed a smaller-than-expected rise in wages last month despite strong jobs gains.
The dollar fell to its lowest since mid-November after the Fed disappointed investors, before trying for gains.
The British pound skewed on Thursday after the BOE announced it was keeping its interest rates unchanged and raised its growth forecasts.
The U.S. dollar index has now erased most of the day's gains in the wake of the decision.
The U.S. dollar tumbled against key rivals on Tuesday and was on course for its worst month since March.
The dollar fell against the Japanese yen following a weekend of headlines relating to President Trump's executive orders on immigration.
The dollar rose against the yen, once again buoyed by expectations that President Trump would deliver on his campaign promise.
A further fall in the price of the Mexican peso Thursday has left market participants cautious on where the currency could be heading next.
The dollar hit a session high against the Mexican peso after Mexico's president said he would not attend a meeting with Donald Trump.
The dollar tumbled to a 7-week low on worries that President Donald Trump was focusing too much on protectionism and isolationism.
U.S. President Donald Trump needs to be clearer about his fiscal policies so one can better understand what may happen to the U.S. dollar, a currencies strategist told CNBC on Wednesday.
The dollar firmed against the yen and euro, after several days of losses in the wake of President Donald Trump's inaugural speech.