The dollar pulled back on Thursday despite peaking at one-month highs on Wednesday following strong U.S. inflation data, as demand for the greenback cooled off with Treasury yields falling from their peaks.

Upbeat U.S. inflation and retail sales data sent the greenback higher as calls for an early rate hike by the Federal Reserve intensified. The dollar index rose to 101.76 on Wednesday, its highest since Jan. 12. It has since retreated to 100.92 in the Asia session on Thursday.

USD/JPY also came off from a 2-1/2-week high of 114.95 touched on Wednesday, touching a low of 113.55. It was last down almost half a percentage point to 113.65.

Data on Wednesday showed U.S. consumer prices recorded their biggest gain in nearly four years, jumping 0.6 percent in January. Retail sales also outpaced expectations, increasing 0.4 percent last month compared to the analysts' poll of 0.1 percent.

EUR/USD edged up 0.30 percent at 1.0641, recovering from a five-week trough of 1.052 touched on Wednesday.

Elsewhere, the Aussie hovered near a three-month high following a slightly better-than-expected reading in the country's January employment data.

AUD/USD last traded at 0.7712 after touching 0.7732, its highest since Nov. 10.

GBP/USD traded at 1.2512, soaring up from a one-week trough of 1.2384 touched on Wednesday, knocked by slowing wage growth in the fourth quarter - bad news for British consumers facing a surge in inflation in the months ahead.