The dollar hovered close to a seven-week low against a basket of its major rivals on Thursday, as safe-haven demand for the greenback diminished as the China-U.S. trade war may not be as damaging as initially feared.

Cable pulled back from a two-month peak on caution over whether the European Union and U.K. will reach a Brexit deal at their current summit. Kiwi dollar jumped to three-week highs after strong domestic GDP data.

EURUSD traded near 1.1690, up 0.1 percent and not far from its August and September highs around 1.1730.

The Australian dollar, seen as a proxy for China-related trades as well as a barometer of broader risk sentiment, was buoyed near three-week highs, having pushed 1.5 percent higher so far this week. AUDUSD fetched 0.7257 after having risen to 0.7276 on Wednesday.

The Aussie was also lifted by comments from Chinese Premier Li Keqiang on Wednesday, that Beijing will not stoop to competitive devaluation of its currency.