Euro rose in European trade against dollar away from 16-month lows while on track for the third weekly loss in a row on worries about divergent US-European monetary policies.

EUR/USD rose 0.3% to 1.1244, with an intraday low at 1.1204, after marking 16-month lows yesterday at 1.1186.

Euro is still down 0.5% against the greenback on track for the third weekly loss in a row.

The weekly losses come amid mounting concerns over divergence monetary policies between Europe and the US, with investors ruling out a European rate hike next year while the Fed is expected to hike rates.

ECB President Christine Lagarde said recently that tightening policies no would directly harm the economy, and that she doesn't expect requirements for a rate hike to be fulfilled by 2022.

Otherwise, US data continue to prove highly bullish, with inflation accelerating by unprecedented rates, bolstering the case for a US rate hike in 2022.

The US stock and bond markets are closed today in observance of the Thanksgiving Holiday, and will resume work tomorrow.

Yesterday, Dow Jones fell less than 0.1% or 9 points, and closed at 35,804, with a day high of 35,825, and a low of 35,591.

S&P 500 rose 0.2% or 10 points to 4,701, after hitting a high of 4,702 and a low of 4,659 points.

Nasdaq rose 0.4% or 70 points to 15,845, with a high of 15,848 and a low of 15,591.

The US dollar fell against a basket of currencies on Thursday, and pulled back from a 16-month peak, to head for the first daily loss in 5 days due to profit-taking.

The dollar index fell 0.2% to 96.65 points, after opening at 96.80 points, and hit a high at 96.81 points.

The index fell 0.4% yesterday, the fourth straight daily gain, due to profit-taking from a 16-month peak of 96.93 points.

The US Department of Labor revealed that the number of initial unemployment claims fell to the lowest level since 1969.

The Federal Reserve meeting minutes showed the bank's members are open to accelerating the reduction of bond-buying program if inflation continues to rise, while speeding up raising interest rates.

President of the Federal Reserve Bank of San Francisco, Mary Daly, said in an interview with Yahoo Finance that she would be open to speeding up the pace of tapering the Fed's bond-buying program.

Oil prices continued to fall as the US market opened on Thursday, deepening losses for the second day in a row, due to US oversupply worries, after a surprise build in the US crude inventories, and the recent decision to tap the country's strategic fuel reserves.

US crude fell 0.7% to $77.79 a barrel, after opening at $78.32, and hit a high at $78.62, and Brent crude fell more than 0.5% to $81.72 a barrel, after opening at $82.17, and hit a high at $82.57.

US crude lost 0.25% yesterday, and Brent crude fell 0.1% after the US Energy Information Administration's weekly report. 

The US Energy Information Administration reported today that the US crude inventories rose 1 million barrels during the past week, while analysts forecast a drop by 1.7 million barrels.

While the US output rose 100K barrels last week, with the total at 11.5 million barrels per day.

The White House announced on Tuesday that it has decided to release 50 million barrels from the Strategic Petroleum Reserve, 32 million barrels will be an exchange over the next several months, and 18 million barrels will be an acceleration into the next several months of a sale of oil that Congress had previously authorized.

The US decision came in coordination with China, Japan, India, South Korea and the UK aimed at easing energy prices and curbing inflation.