The US dollar continued to trade hovering around five-week lows in the European session, while the yen weakened again after the latest Bank of Japan (BOJ) meeting.
The dollar index, which tracks the greenback's movements against six major currencies, traded little changed at around 102.20.
The US dollar initially received a boost after the Federal Reserve (Fed) expected at least two more hikes this year.
However, the strengthening was short-lived after weak readings of US economic data raised questions about how far the Fed could raise interest rates.
Meanwhile, the yen slipped to a seven-month low against the US dollar after the BOJ reiterated its dovish stance to keep interest rates low.
The euro maintained its strengthening momentum at a five-week high against the greenback amid the continued hawkish stance of the European Central Bank (ECB).
The central bank previously signaled the next interest rate hike in July after raising rates at its latest meeting.
In addition, the pound continued to strengthen at its highest level in over a year supported by expectations that the Bank of England (BOE) will raise its interest rates next week.
Additionally, the Aussie dollar remained trading higher at its strongest level in months against the greenback, while the New Zealand dollar hit a three-week high.
The Canadian dollar traded at its strongest level in nine months against the US dollar.
