The U.S. 10-year yield retreated from the 5% level it had been approaching on Thursday, just before Federal Reserve Chair Jerome Powell's comments at an economic discussion. As a result, the dollar declined against the euro and the yen.

Since mid-July, higher Treasury rates have made the dollar more appealing compared to other currencies. The benchmark 10-year yield hit a 16-year high of 4.983% earlier on Thursday.

However, after the index reached a 10-month high on October 3, the dollar's rise has mostly come to an end and the currency has been stable.

Another element that could raise the demand for the US dollar as a safe haven is worries about the war between Hamas and Israel.

The dollar index that gauges the greenback versus its major pairs dipped by 0.24% on the day at 106.28.

EUR/USD gained 0.37% to $1.0577.

USD/JPY inched up but lingered close to the 150 level, where investors fear that Japanese authorities would step in to support the yen. Last seen at 149.78.