The greenback slumped for the second consecutive day on Thursday following an unusual warning from the heads of the finance departments in the US, Japan, and Korea over the precipitous drop in other currencies, which in turn provided the yen with a moment of respite.

The yen inched up following the statement of Japan's top currency diplomat Masato Kanda said finance leaders of the G7 that reassured that the major choppy trade of the currency was unfavourable.

Solid US economic figures and stubborn inflation drove investors to reassess the estimates of rate cuts that will likely not be anytime soon. Disruption in the Middle East has also buoyed the appetite of the greenback.

The dollar index that gauges the greenback versus its major pairs dropped by 0.11% at 105.84.

EUR/USD muted at $1.0676 following Wednesday’s gain of 0.5%, moving away from five-month low hit on Tuesday.

GBP/USD edged up by 0.21% at $1.248.a

The yen advanced to 153.96 versus the greenback on Thursday before limiting gains. The greenback steadied at 154.43 yen, following Tuesday's 34-year low of 154.79.