The euro extended its losses against the dollar to trade 1 percent lower on Thursday, reversing a small bounce made after the release of U.S. ISM manufacturing data.

The euro fell about 1 percent to a low of $1.42297 on trading platform EBS, off a New York session peak of $1.4315 set immediately after the ISM data. It was last at $1.4244.

You had the knee-jerk reaction on the better-than-expected ISM manufacturing, said Brian Dolan, chief strategist at Forex.com in Bedminster, New Jersey. Then we got a look at the underlying sub-components and there were not nearly as bright as the headline index number.

That helped limit risk appetite and saw the euro turn around, he said.

(Reporting by Wanfeng Zhou; Editing by Theodore d'Afflisio)