Talk of a European Central Bank rate cut also pushed the single currency lower;
In U.S. trading on Thursday, EUR/USD was down 0.11% at 1.3001, up from a session low of 1.2956 and off from a high of 1.3094.
The pair was likely to find support at 1.2956, the earlier low, and resistance at 1.3094, the earlier high.
In the U.S. earlier, the Department of Labor reported that the number of people filing for initial jobless claims fell by 16,000 to 339,000, last week, outpacing market expectations for a drop of 4,000 to 351,000.
Jobless claims for the preceding week were revised up to 355,000 from a previously reported increase of 352,000.
The news bolstered the dollar, which has softened in recent sessions amid talk that slumping economic indicators will prompt the Federal Reserve to take its time winding down monetary stimulus measures, which weaken the greenback to spur recovery.
The euro, meanwhile, came under pressure after U.S. investment bank Goldman Sachs said it expected the European Central Bank to trim benchmark interest rates 25 basis points at its monetary policy meeting next Thursday.
The investment bank also cut its 2013 eurozone growth forecast to -0.7% from a previous forecast of -0.5%.
Slumping European industrial output reports, soft service-sector data and eroding business confidence data have many market participants speculating the ECB will move to loosen policy to kick-start recovery.
The euro, meanwhile, was down against the pound and down against the yen, with EUR/GBP trading down 1.18% at 0.8426, and EUR/JPYtrading down 0.19% at 129.28.
On Friday, the U.S. will release preliminary data on first quarter growth.
The U.S. is also to release revised data from the Thomson Reuters/University of Michigan on consumer sentiment and inflation expectations.
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