The dollar held near 3-month highs against the euro on Thursday, benefiting from sustained strength in core U.S. inflation and weak data out of Europe.
Although headline U.S. inflation growth logged its weakest pace in 1-1/2-years in January, traders focused on the core price gauge, which was up for the third straight month and gave the dollar some impetus.
The greenback was hit earlier this year from a shift to a cautious stance by the Federal Reserve. The latest data suggested the central bank will need to stay vigilant on pricing pressures even as it adjusts policy imperatives in the face of heightened risks to growth.
The dollar index, a gauge of its value versus six major peers, was marginally higher at 97.20, having gained 0.5 percent in the previous session. The index has rallied 1.7 percent so far this month, after two consecutive months of losses.
Elsewhere, the yen was steady at 110.95. The dollar has gained on its Japanese rival in recent weeks, up 1.9 percent so far in February.
The Aussie dollar, often considered a barometer for global risk appetite, was flat at $0.7087, after gaining around 0.5 percent in the previous session led by optimism on the China-U.S. trade talks.