The dollar extended gains against the euro on Thursday after U.S. data showed new claims for unemployment benefits nudged lower last week.

The data pointed to a modest improvement in the labor market at the start of the fourth quarter.

The euro last traded at $1.3734, down 0.4 percent on the day, according to Reuters data. It traded at $1.3742 prior to the release of the data.

In the previous session, the euro had touched its highest level since September 16.