Following news that U.S. unemployment claims soared more than anticipated last week, the dollar fell on Thursday. This gave rise to hopes that a weaker labour market would lessen the possibility of the Federal Reserve picking up the pace of rate increases.

For the week ending March 4, the number of first claims for state unemployment benefits increased by 21,000 to 211,000 (seasonally adjusted). According to a poll conducted by Reuters predictions hovered around 195,000 claims.

The dollar index that gauges the greenback versus its major pairs dipped by 0.30% at 105.29. It has decreased from a three-month peak reached on Wednesday of 105.88.

EUR/USD added 0.25% to $1.0570 and has climbed since Wednesday's the lowest level of $1.0524.

The yen edged up ahead the Bank of Japan's final meeting with governor Haruhiko Kuroda on Friday.

JPY/USD slumped by 0.84% at 136.23 post touching the highest level in 3 months of 137.90 on Wednesday.