The euro extended gains versus the U.S. dollar on Thursday amid a broad increase in risk appetite.

A report in the United States showing a drop in weekly jobless claims also helped support the euro zone single currency and other riskier assets.

The euro briefly hit a session high at $1.2688 EUR=, before trimming gains. It traded last up 0.4 percent at $1.2681. (Reporting by Vivianne Rodrigues; Editing by James Dalgleish)