The dollar index, which measures the greenback against six major peers, fell 0.12 percent at 92.7378.
In late New York trading, the euro increased to 1.1855 U.S. dollars from 1.1823 dollars in the previous session, and the British pound fell to 1.3271 dollars from 1.3320 U.S. dollars in the previous session. The Australian dollar fell to 0.7274 U.S. dollar from 0.7317 dollar.
The U.S. dollar bought 106.05 Japanese yen, lower than 106.29 Japanese yen of the previous session. The U.S. dollar decreased to 0.9089 Swiss franc from 0.9127 Swiss franc, and it increased to 1.3129 Canadian dollars from 1.3069 Canadian dollars.
On the data front, U.S. services Purchasing Managers' Index dropped to 56.9 percent in August from the July reading of 58.1 percent, the Institute for Supply Management reported on Thursday, indicating a slowing pace of growth in the sector.
U.S. initial jobless claims, a rough way to measure layoffs, fell to 881,000 in the week ending Aug. 29, following an upwardly revised 1.01 million in the prior week, the Department of Labor reported on Thursday.
The decline in new claims mainly stemmed from a major change in seasonal adjustment methodology and the labor market showed little progress absent the change, according to analysts.
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