The giant currency US dollar remained under pressure in the European session despite managing to register a slight increase on the back of stronger US economic data.
The European session saw the dollar index continue to weaken at around an 8-month low against a basket of major currencies at 101.86.
Earlier, it was reported that the US economy grew 2.9% year-on-year in the fourth quarter against expectations of 2.6%, but more than the 3.2% growth recorded previously.
Other data from the US also revealed weekly jobless claims fell and durable goods orders rose in December.
However, these positive numbers only had a slight impact on the USD and failed to shake the market's expectations of the Federal Reserve (Fed) setting interest rates by 25 basis points at the next meeting.
Ahead of the weekend, core US personal consumption expenditure (PCE) data will be closely watched by markets in the New York session.
Looking at the broader market movements, the euro and the pound did not show significant changes despite the decline in the Asian session.
Commodity currency trading, Aussie dollar, kiwi and loonie remained strong at the highest level of the month against the weak US dollar.
Meanwhile, the yen gained support from Tokyo inflation data which hit a new 42-year high in January, signaling increased pressure on the Bank of Japan (BOJ).
