The dollar fell on Thursday after U.S. economic data pointed to a slowdown in economic growth, although that did not ease pressure on the yen, which remained around a 38-year low, keeping the market on alert for monetary authorities to intervene in the foreign exchange market.

The euro held near a three-week high against the US currency, and the pound rose ahead of the UK election that begins later today.

The dollar index, which measures the greenback against a basket of major currencies, was steady at 105.28 after briefly falling to its lowest since June 13 at 105.04 on Wednesday.

Weaker-than-expected U.S. economic data on Wednesday, including a services report and a jobs report, showed the economy is slowing after initial claims for U.S. unemployment benefits rose last week.

Investors' attention now turns to the closely watched nonfarm payrolls report, due out on Friday, which is expected to show an increase of 190,000 jobs in June after a rise of 272,000 in May, according to a Reuters poll of economists.

Ahead of the jobs report, a string of weaker economic data had the market pricing in about a 68% chance of a US rate cut in September versus 56% a week ago.

U.S. Treasury yields also fell on Wednesday.

But despite the lower dollar and yields, the yen remained stuck near the low of 161.96 to the dollar hit in the previous session, its lowest since December 1986.

Traders were bracing for possible Japanese government currency intervention with U.S. markets closed today, given Tokyo's intervention on April 29 and May 1.

Japan spent 9.79 trillion yen ($61.31 billion) to defend the currency in those two rounds of heavy yen buying, but subsequent moves have not been in the yen's favor.

The Japanese currency rose in the latest trading by 0.11% against the dollar to 161.53.

The yen also approached an all-time low of 174.48 yen against the euro hit on Wednesday.

The pound held steady ahead of the UK election after rising against the dollar in late trading yesterday, trading at $1.2744, up 0.03% on the day.

The euro rose 0.04% to $1.079, after rising to a three-week high against the dollar on Wednesday.

As for cryptocurrencies, Bitcoin rose in the latest trading by 1.41% to $60,376.65.