The euro edged up 0.3 per cent against the dollar to $1.4783 today staying above a six-month low of $1.4630 hit on Tuesday.
But the single currency was 8 per cent below a record peak of $1.6040 hit a little over a month ago.
The dollar edged down today against the euro today as investors booked profits on the US currency's surge this month and oil prices pushed higher.
Persistent worries that a bailout of US mortgage finance giants Fannie Mae and Freddie Mac could pose further risks to an already battered financial system also made investors cautious on the dollar.
The dollar has soared this month as investors unwound massive positions favouring the euro, higher-yielding currencies and commodities that they had taken on bets that the global economy would withstand the US downturn and credit crisis.
"The dollar was dented by profit-taking following its recent surge," said a forex trader at a big Japanese bank.
The pace of rise in the US currency is seen slowing as many investors have already slashed their euro holdings, while chart patterns suggested the dollar was due for a brief reversal, traders said.
A rebound in oil to above $116 a barrel and a rise in gold also hit the US currency, with market players keeping a close eye on commodities because their tumble added fuel to the dollar's surge.
As the market focuses on slowing global growth, investors will look to a string of data from Europe for clues about the health of the euro zone and British economies later in the day.
Reports on euro zone purchasing managers indices for manufacturing and service sectors in August and British retail sales for July are due for release.