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News that US jobless claims rose sent the pound up 0.4 percent to $1.5722.
The euro rose a fraction of a percentage point to $1.2282.
"Market sentiment picked up this week on data showing the US housing market on the mend while corporate earnings for the most part haven't lived up to investors' low expectations," said analysts at Travelex.
The dollar fell 0.3 percent to 78.59 yen and was down a fraction of a percent to 1.0074 Swiss francs.
Meanwhile the dollar lost more than 1.2 percent against the Russian ruble, with the greenback fetching 31.83, thanks to rising oil prices.
The Australian dollar gained 0.6 percent to reach $1.0428.