The U.S. dollar hovered just below a six-week high, retreating on rising hopes that the U.S. and Iran are nearing a deal to end the war in the Middle East.
President Donald Trump said talks were in the final stages but warned of further attacks if Iran fails to agree.
The dollar ended an eight-day winning streak against the yen, steadying at 158.905 yen in early Thursday trading.
The 160 level remains a pressure point due to potential Japanese intervention.
The euro held steady at $1.1626, while the dollar index remained flat at 99.128.
