On Thursday, however, the dollar rebounded against the euro and the British pound after both the Bank of England and the European Central Bank maintained cautious stances on the economy and kept their benchmark interest rates at historical lows.
Central banks around the world, including in the U.S., have slashed interest rates in an effort to keep borrowing costs low and spur the economy. At the same time, those lower interest rates tend to weaken a country's currency by reducing the yields on cash investments for currency traders.
Both gold and oil prices resumed their three-month climbs following sharp pullbacks on Wednesday.
Light, sweet crude rose $2.51 to $68.63 a barrel on the New York Mercantile Exchange.
Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.66% from 3.54%.
Last week, the 10-year yield surged to a six-month high of 3.75% on worries over mounting U.S. debt loads. Rising long-term yields also have investors worried, since interest rates on mortgages and other consumer loans that are tied to the 10-year Treasury note rise, hampering prospects for increased home sales and mortgage refinancing.
Overseas, Japan's Nikkei stock average fell 0.8%. In European trading, Britain's FTSE 100 pared early gains after the interest rate decisions, recently adding 0.2% in afternoon trading. Germany's DAX index rose 0.3% and France's CAC-40 gained 0.6%.