The dollar held its ground on Thursday after slipping on the previous day, as lingering risk aversion pinned Treasury yields near multi-week lows and restrained the greenback's bounce.

EUR/USD fell to 1.0670, edging back towards a one-week low of 1.0640 reached on Wednesday on heightened European political woes. It trades around 1.0700 at the time of writing.

USD/JPY rose more than 0.3 percent to 112.42 after nearing a 10-week low of 111.590 the previous day. The greenback was weighed by a sharp slide in Treasury yields overnight.

The dollar index against a basket of major currencies was up 0.1 percent at 100.43.

The index clipped a 14-year high of 103.820 in January on hopes of large fiscal spending and other pro-growth policies under U.S. President Donald Trump. But it has dropped since hitting that peak on Trump's protectionist trade rhetoric and perceived support for a weaker dollar.

Buying of U.S. Treasuries gathered pace of late as expectations for a March interest rate hike by the Federal Reserve have cooled.

Concern about European politics has also lifted Treasuries. Recent polls have shown German Chancellor Angela Merkel falling behind a candidate from the country's Social Democrats in this year's elections. Polls have also suggested France's Marine Le Pen, who has championed pulling the country out of the European Union, is gaining ground.

The slide in U.S. yields has put the dollar under pressure against the safe-haven Japanese yen in the wake of geopolitical concerns.

The yen could be poised for further strength should Trump reiterate his opposition to a strong dollar when he meets Japanese Prime Minister Shinzo Abe at a two-day summit starting on Friday.