The euro is rose against the dollar Thursday after Italy easily sold off $6.41 billion in bonds. Traders also bought euros as Spain's borrowing rates continued to fall.
The euro rose to $1.3196 in late trading Thursday from $1.3099 late Wednesday.
Demand was brisk at an auction of Italian bonds. Meanwhile, the yield on Spain's benchmark 10-year bond fell below 5.8 percent after jumping above 5.9 percent earlier in the week. Easing yields are a sign that investors are more confident in the country's finances.
In the U.S., the Labor Department said weekly unemployment benefit applications jumped 13,000 to 380,000. That's a sign that the job market's recovery remains slow.
The U.S. currency was also lower against most other currencies. The British pound rose to $1.5970 from $1.5904.
The dollar fell to 80.80 Japanese yen from 80.92 yen, to 0.9105 Swiss franc from 0.9173 Swiss franc and to 99.45 Canadian cents from 1.0039 Canadian dollar.