The dollar clawed back ground against the euro after recently sinking to an all-time low as positive services data for the US economy helped boost the currency.
In late European trading, the euro was trading at $1.3565, from $1.3590 in late trade on Wednesday.
The pace of growth in the US service sector rose in April, as new orders and jobs components improved, according to the report released tody.
The Institute for Supply Management's services index rose to 56 in April from a four-year low of 52.4 in March. The median forecast among analysts was 53.
A number above 50 indicates growth in the sector.
The survey's new orders component was 55.5 in April, up from March's 53.8.
The survey's prices-paid index edged up to 63.5 in April from 63.3 in March while the jobs component improved to 51.9 to from 50.8.
The services sector represents about 80% of US economic activity, including businesses such as restaurants, hotels, hair salons, banks and airlines.
A separate report today showed that US business productivity grew a greater-than-expected 1.7% in the first three months of 2007 but labor costs rose far less than forecast, official data showed today.
The Labor Department report also showed that productivity, a measure of how much any given worker can produce in an hour, advanced by 2.1% in the fourth quarter of last year, revised up from the previously reported 1.6% gain.
Analysts were expecting business productivity to rise by 1% in the first quarter.
Unit labor costs grew by 0.6% in the first three months of the year, well below the 4% rise analysts were expecting.
However, productivity advanced by just 1.6% in all of 2006, the smallest gain since 1997, while unit labor costs grew by 3.1%, the biggest increase since 2000.
