The dollar was on the back foot on Thursday, though it drew some support from higher U.S. Treasury yields as traders contemplated the possibility of another rate hike by the U.S. Federal Reserve, even if it pauses next week.

The increased expectations that U.S. and global interest rates may have further to rise has come on the back of surprise rate increases by the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) this week.

Elsewhere, the U.S. dollar edged broadly lower in early Asia trade, with sterling rising 0.08% to $1.2449, while the euro similarly gained 0.08% to $1.0707.

Against the yen, the greenback slipped 0.21% to 139.85 , with the Japanese currency buoyed by Thursday's data showing Japan's economy grew an annualised 2.7% in the first quarter, much higher than the initial estimate for a 1.6% expansion.

The U.S. dollar index dipped slightly to 104.02, though strayed not too far from an over two-month high hit last week, on the back of higher Treasury yields.

Source : Reuters