The greenback eased further at the opening of the European session as investors focused on US retail sales data.
Against a group of major currencies, the dollar index, which measures the dollar's strength, fell to around 102.28.
After recording a contraction of 1.0% in March, the market expects US retail sales to rise again in April to 0.8%.
In the meantime, the market will also focus on the President's meeting with the top policy makers of Congress today to discuss the debt ceiling issue.
The euro is showing gains following the weakening of the US dollar, with investors now awaiting the release of German economic sentiment data from the ZEW survey.
Meanwhile, the pound bounced back from a fall after UK jobs data was released showing a dismal reading in March.
On the other hand, the Aussie and New Zealand dollars recovered some losses after falling due to Chinese economic data that continued to show an uneven recovery in April.
In addition, the dollar loonie also rose ahead of the publication of Canadian inflation data in the New York session which is projected to remain unchanged at 0.5% in April.
The yen was little changed against the US dollar, limited by the 10-year US treasury yield which remained stronger.
