On Thursday, the greenback rose to a two-month high due to growing concerns about a US default and the possibility of a rating drop from Fitch.

The dollar index that gauges the greenback versus its major pairs added 0.2% to 103.955, nearly close to the overnight high of 104.05, which was the highest point since mid-March.

A more pessimistic assessment of the Federal Reserve's monetary policy activities this year has helped the dollar, and the U.S. economy has so far shown itself to be durable to the vigorous tightening.

EUR/USD slid 0.1% to 1.0739, earlier-than-expected figures on Thursday revealed that the largest economy in Europe, Germany, shrank marginally in the first quarter of 2023 compared to the previous three months, bringing the country's economy into recession.

GBP/USD slid to 1.2363, the risk-sensitive index is not far from its worst level since April 3, while.

USD/JPY edged down to to 139.45, below its highest level in six months, with the yen hurting as two-year U.S. Treasury rates increased to levels not seen since mid-March.