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A positive earnings report from JPMorgan Chase led to currency gains being capped, suggesting that hopes are beginning to rise that US banks are recovering from the financial crisis, reports Reuters.
Meanwhile, the euro saw a fall in value after new statistics showed a drop in industrial production and inflation across the continent.
Adam Cole, global head of Forex strategy at RBC Capital Markets in London, commented: "There's a general sense of negative sentiment against the euro and a feeling creeping into the market for green shoots of recovery in other countries and not the euro zone."
In related news, Axel Weber, head of the German Bundesbank and a governing council member of the European Central Bank, has said there is little chance of the euro zone succumbing to deflation.
