On Thursday, the dollar strengthened as market participants awaited U.S. employment figures ahead of the Jackson Hole symposium of the Federal Reserve. In contrast, the Turkish lira strengthened following a larger-than-anticipated rate hike by the central bank.

The dollar index that gauges the greenback versus its major pairs, climbed 0.36 percent to 103.72, recovering from Wednesday's decline and on track for a monthly gain.

Investors exercised caution as softer-than-expected economic data from the U.S. and Europe clouded the outlook for the economy and increased the value of safe-haven currencies.

Investors stated that they did not anticipate sudden changes when the United States released job statistics later in the day because markets were on high alert for any unexpected developments when Fed Chair Jerome Powell spoke at Jackson Hole on Friday.

After data revealed that the growth in U.S. business activity in August was the weakest since February and that the economy appeared to be starting to stagnate, 10-year U.S. yields experienced their largest one-day decline over three months on Wednesday.