The US dollar is regaining momentum after losing more than 1% on Wednesday as the impact of Bank of England (BOE) intervention fades.
However, the currency king is still far from the 20-year high of 114.78 it hit on Wednesday, which saw the dollar index trade at 113.50 against a basket of major currencies.
The pound jumped to its highest level since mid-June after the BOE announced plans to buy emergency bonds to support the bond market, which has fallen sharply along with the value of the pound.
However, faced with uncertainty in the management of the UK economy and global growth prospects, the pound's gains began to fade and the euro weakened.
The euro was weakened by a dismal reading of Spain's annual inflation data which fell to 9% in September from 10.5%.
Investors will be looking at German inflation readings that will also be released in the European session as an indication of the policy direction of the European central bank (ECB).
As investors focused on the pound, the yen traded modestly lower against the greenback.
Meanwhile, the Aussie and New Zealand dollars also showed a decline after rising earlier.
