The dollar hit a two-month low against the euro and a basket of currencies on Thursday after dovish U.S. Federal Reserve minutes triggered concerns about the outlook for the U.S. economy.
Federal Reserve officials slightly revised down their economic growth outlook, while minutes from the central bank's June 22-23 meeting said further policy stimulus may need to be considered if the outlook worsened.
The FOMC minutes were rather cautious and pessimistic about the U.S. economic outlook, which is negative for the dollar, said Youna Park, Commerzbank currency strategist in Frankfurt.
U.S. industrial output and jobless claims will be watched later in the day while JP Morgan earnings are also in focus.
At 0832 GMT (4:32 a.m. EDT), the dollar index .DXY was down 0.4 percent at 83.145, having hit a two-month low of 83.104.
The index dipped through support at around 83.15, a 38.2 percent retracement of its rise from a low of 74.17 in November 2009 to a high of 88.59 on June 8.
The euro rose 0.2 percent to a two-month high of $1.2782 on the EBS trading platform, while the dollar also hit a one-week low against the yen around 87.86 yen.
Charts looked bearish for the dollar after the greenback failed the previous day to rise above 89.23 yen -- a 38.2 percent Fibonacci retracement of the dollar's fall from its June high of 92.68 yen to a July 1 low of 86.96 yen, traders said.
U.S. data will be a very important market-moving factor today, especially after the minutes from the Federal Reserve's last meeting fanned speculation of further policy easing, said Hideki Hayashi, global economist at Mizuho Securities in Tokyo.
The Australian dollar stood at $0.8797, down 0.5 percent on the day.
Data showed China's economic growth slowed to 10.3 percent in the second quarter from 11.9 percent in the first quarter in response to the fading effect of government fiscal and monetary stimulus.
The release initially boosted the Aussie as the data was not as bad as market rumors had suggested ahead of the release, but the figures were still slightly weaker than forecast and it resumed falls in the European session.
(Additional reporting by Rika Otsuka in Tokyo; Editing by Toby Chopra)