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According to Bloomberg, the greenback fell to $1.4047 against the euro as of 09:12 BST, representing a drop of 0.5 per cent, while the Swiss franc slipped by the same amount to 1.1659 per euro.
This represents the end of the euro's three-day run of declines against the dollar thanks to a second day of rises for Italian and Spanish bonds.
Sara Yates, a foreign exchange strategist in London at Barclays, said the forex trading market has been given "comfort" by better-than-expected Chinese economic data.
China's national statistics bureau revealed the country's economy grew 9.5 per cent year on year in the second quarter, following a 9.7 per cent rise in the previous three-month period.
"For the US, interest rate hikes are a long way into the future. We still look for the euro to grind higher but there are still significant risks," Ms Yates added.
Posted by Greg Secker
