The dollar gained against the euro on Thursday but fell against sterling ahead of interest rate decisions from the European Central Bank and the Bank of England, dealers said.
In European trade, the euro fell to 1.5340 dollars from 1.5395 dollars in New York late on Wednesday.
The US unit slid to 103.92 yen from 104.66 yen while the British pound climbed to 1.9609 dollars from 1.9532 dollars.
Dealers also tracked soaring oil prices which had hit a record high 123.93 dollars on Wednesday.
Later Thursday, the European Central Bank (ECB) was widely expected to leave eurozone borrowing costs unchanged, with all eyes looking ahead to the subsequent press conference amid inflation concerns, analysts said.
"The ECB is expected to keep interest rates on hold at 4.0 percent today," said Commerzbank analyst Gavin Friend.
"However, today's statement of ECB president (Jean-Claude) Trichet could prove a stumbling block for the euro," he said.
"If he acknowledges increasing downside risks for the economy today, investor concerns could increase further, weighing on the euro."
ECB governors, meeting in Athens this week at a twice-annual event organised in a eurozone capital, have kept the main lending rate at 4.0 percent since June last year.
In contrast, the US Federal Reserve has slashed its rate to 2.0 percent in a bid to boost the flagging American economy while the Bank of England has also gradually lowered British borrowing costs.
Higher interest rates are usually seen as positive for a currency because investors prefer assets which offer higher yields.
The BoE was to announce its latest interest rate decision at 1100 GMT on Thursday while the ECB announcement was due shortly afterwards at 1145 GMT.
The British central bank's nine-member monetary policy committee (MPC) was expected to keep rates steady at 5.0 percent following their meeting in London.
However, a recent run of weak data -- on consumer confidence, house prices, industrial output and service sector activity -- has boosted the chances of another cut following last month's quarter-point reduction, analysts said.
"Whilst weak activity data warrants a reduction in the bank rate, this is hampered by inflation concerns," said Steve Pearson, chief currency strategist at Bank of Scotland Treasury.
"This is likely to leave the MPC split on its decision today but a narrow majority could still push a rate cut through."
In London on Thursday, the euro changed hands at 1.5340 dollars against 1.5395 late on Wednesday, at 159.41 yen (161.61), 0.7827 pounds (0.7881) and 1.6189 Swiss francs (1.6239).
The dollar stood at 103.92 yen (104.66) and 1.0554 Swiss francs (1.0546).
The pound was at 1.9609 dollars (1.9532).
On the London Bullion Market, the price of gold rose to 871.75 dollars per ounce from 868.25 dollars late on Wednesday.
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