The dollar reversed gains its made this week against the majors in New York, as traders locked in their profits after the consumer confidence sent greenback tumbling from the weekly highs.
Consumer confidence for January slipped to 95.8 from 97.1 in December as bearish sentiment in US stock market and climbing oil prices weighed on the sentiment. The decline in confidence lent support to dollar bears as traders pushed the pair back above psychological 1.3000 level.
The US dollar was quoted at 1.3041-44 against the euro, 1.8782-87 versus the pound, and 102.69-73 against the Japanese yen.
Wall Street was mixed today as soaring oil prices outweighed the positive report by blue chip heavyweight General Electric.
Dow Jones Industrial Average was 0.8 percent lower at 10,392.99, while the broader Standard and Poor's 500 index lost 0.6 percent to 1,167.87. The technology-laden Nasdaq Composite index posted a 0.6 percent loss to 2,034.27.
GE fell 0.18 percent to $35.13 despite reporting an 18 percent increase in quarterly earnings as company implemented more efficient tax management.
This week brought in a flurry of disappointing earnings from the technology sector as EBay lost 19.1 percent on Wednesday after dismal earnings results.
Motorola lost 7.1 percent as the company lowered its earnings guidance, prompting investor to dump company's shares on concerns of the future sales growth.
3M's spectacular 16.3 percent in crease in earnings was largely ignored, as investors remained cautious about company's exposure to currency fluctuations.
The NYMEX crude oil futures contract for March delivery rallied $1.22 to $48.53 per barrel as traders became bullish after the cold weather settled in Northeastern US, increasing demand for heating oil.
The COMEX gold futures contract for February delivery rallied $4.30 per to $426.90 per ounce as traders took their queues from the currency markets as dollar collapsed in a broad sell-off against the majors.
The US treasury Bonds rallied after worse than expected consumer confidence sparked speculation that US economic growth peaked and Fed may put its tightening policy on hold. The 10 Year Treasury Note gained to 100 27/32 pushing the yield lower by 3 basis points to 4.14 percent. The 10-Year Treasury Note futures contract for March delivery gained 0.07 to 112.09.