On Thursday, despite the United States' credit rating being downgraded, which raised concerns about the country's fiscal prospects, the dollar rose to a four-week high against its main counterparts.

Data released on Wednesday revealed that U.S. private payrolls increased more than anticipated in July, supporting the dollar by demonstrating the labor market's ongoing resiliency.

Others claimed that a fresh wave of risk aversion following Fitch's downgrading of the U.S. government's top credit rating may have led to some safe-haven buying, which ironically also supported the dollar.

The dollar index that gauges the greenback versus its major pairs reached a four-week high of 102.82 and added 0.5% to the earlier session's gain.

EUR/USD slipped 0.09% to $1.0928.

GBP/USD slumped by 0.08% to $1.27015, prior to the BOE's announcement of its monetary policy later that day, when the institution is predicted to hike interest rates to 5.25% from 5%, a 15-year high.

USD/JPY dropped 0.4% at 143.83 per dollar.