The dollar rose on Thursday, erasing earlier losses against the euro after a gauge of activity in the U.S. services sector beat forecasts for the month of June.
The greenback edged higher after the Institute for Supply Management's services index unexpectedly rose to 60.7 in June, beating forecasts for a modest decline from the previous month to 58.0 and easing concerns about a slowing economy.
The data is certainly consistent with a view that the recovery in the service sector since the March low is no fluke, Alan Ruskin, chief international strategist at RBS Greenwich Capital, wrote in a note to clients.
The euro was trading down 0.2 percent on the day at $1.3587, well below a high of $1.3660 hit earlier in the session. The dollar was up 0.1 percent at 122.78 yen.