The dollar held above an all-time low against the euro today after data the previous day showed growth in the US labour market.
The dollar pulled further away from a record low against a basket of major currencies yesterday after the Institute for Supply Management's employment measure indicated growth in the job market last month.
The dollar index, a gauge of the greenback's value against a basket of six major currencies, was flat on the day at 78.573. The index struck a lifetime low around 77.660 on Monday.
The euro edged up 0.1 per cent on the day to $1.4105 but was well below its all-time high of $1.4283 hit on electronic trading platform EBS earlier this week.
The data fuelled hopes that the eagerly awaited monthly payrolls report for September could show a similar turnaround after showing a contraction for the first time in four years in August.
The fall in August payrolls was enough to prompt the Federal Reserve to lower interest rates by 50 basis points to 4.75 per cent last month. The aggressive rate cut and expectations of more monetary easing have prompted a sharp sell-off in the dollar.
The market is awaiting the post-meeting comments of ECB President Jean-Claude Trichet to see what central bankers think of the euro's strength as well as the state of the euro zone economy.
The Bank of England concludes a two-day meeting today . The central bank is widely expected to hold interest rates at 5.75 per cent when it announces its rate decision later today.