The dollar was down against the euro and sterling as investors pared back large bearish bets on the two european currencies following strong euro zone economic data. Nick Bennenbroek, head of FX strategy at Wells Fargo in New York said: "What we’re seeing here is probably corrective strength in the euro and sterling. We had very large positions in these currencies so they are due to bounce anyway."
The euro was up 0.7 percent at $1.3756. The dollar was flat at 90.54 yen.Sterling was up 0.8 percent against the dollar at $1.5184. The euro was down 0.3 percent against the pound at 90.54 pence.