New York: The dollar index, which measures the US currency against six rivals, was at 104.29, down 0.33% on the day. The index touched a three-week high in the previous session.

According to Qatar News Agency, the euro bounced off a three-week low touched earlier on Thursday after US President Donald Trump imposed a 25% tariff on imported cars and light trucks starting next week, even as the prospect of an all-out trade war dimmed risk sentiment. The euro rose 0.3% higher at $1.078625 after reaching a three-week low of $1.0733 in early trading. Meanwhile, the yen was slightly stronger at 150.17 per dollar.

The Mexican peso weakened by 0.5% to 20.2054 per US dollar in Asian hours. The Canadian dollar remained flat but weaker at 1.4261 per US dollar.

Both the Australian and New Zealand dollars showed gains, with the Australian dollar up 0.21% at $0.6311 and the New Zealand dollar rising 0.23% to $0.5742. Sterling also strengthened by 0.26% to $1.2919, recovering from the previous session's 0.45%.