The Bloomberg Dollar Index steadied following a four-day losing streak. As a sharp decline in U.S. stocks fueled risk-off sentiment, the Japanese yen and Swiss franc outperformed other G-10 currencies.

The Bloomberg Dollar Index held stable as markets focused on upcoming U.S. CPI data scheduled for release on Friday.

U.S. Treasury yields fell across the board, with the 10-year yield dropping more than 7 basis points. The 30-year bond auction attracted strong demand.

The number of Americans filing first-time unemployment claims edged lower last week, after a previous surge caused by severe winter weather.

Driven by safe-haven demand, the USD/JPY fell more than 0.3% to 152.75, while the USD/CHF declined 0.32% to 0.7691.

The yen rose for the fourth consecutive day, marking its longest winning streak since December of last year.

GBP/USD fell less than 0.1% to 1.3621, declining for the third straight day. UK economic growth in the fourth quarter fell short of expectations.

Commodity-linked currencies underperformed due to the risk-off mood.

AUD/USD dropped 0.55% to 0.7088, among the weakest performers in the G-10 group.

USD/CAD rose for the second consecutive day, trading at 1.3613.