"The UK's vaccination campaign faces a bump in the road owing to the EU's plans to restrict vaccine exports," said Shaun Osborne, Chief FX Strategist at Scotiabank.
Euro zone business activity unexpectedly grew this month, a preliminary survey showed, but with much of Europe suffering a third wave of coronavirus infections and renewed lockdown measures, that may not last through April.
The PMI saw the dollar index pull back from a four-month high of 92.608 hit in early London trade, trading at the 92.454 mark around midday.
Stocks in Sao Paulo, however, fell as airline shares came under pressure again. Shares in Azul SA and Gol Linhas Aereas Inteligentes SA fell 5% and 3% respectively.
The rise in Pakistan's remittances and exports and the accumulation of dollars in the SBP Roshan Digital Accounts are among the factors behind the rupee appreciation against the dollar.