The euro was higher against the dollar in Asian trading Wednesday although tempering gains, with EUR/USD up 0.02% and trading at 1.3131.
The dollar dropped in earlier sessions as investors sold the greenback as well as the yen in search or risk on positive economic news before rebounding amid bottom fishing.
The Spanish government sold at auction12-month and 18-month bills with no major difficulties, and while yields were high, the country did raise more than it targeted.
Also in Europe, the ZEW Centre for Economic Research reported that its index of German economic sentiment jumped to 23.4 in April from 22.3 in March, much better than analysts' calls for a 20.0 reading.
The International Monetary Fund, meanwhile, said it expects the global economy to expand by 3.5% in 2012, according to the latest edition of its World Economic Outlook, up from a January forecast for 3.3%.
Solid earnings in the U.S. fueled hopes for more growth in the world's largest economy, sending most U.S. blue-chip stocks climbing and the dollar falling amid risk-on trading, with markets brushing off flat U.S. industrial output figures that slightly disappointed.
The U.S. housing sector, which threw the country into the downturn and continues to drag on its recovery, saw mixed data.
Building permits issued in March rose 4.5%, beating out calls for a 0.7% decline.
However, U.S. housing starts fell to levels not seen since October, tumbling 5.8% to a seasonally adjusted 654,000 units from a revised 694,000 units in February.
Economists were forecasting housing starts to rise 1.0% in March to 705,000 units.
In the U.K. inflation rates came largely in line with expectations, rising 0.3% in March from February and 3.5% year over year.
In Japan, industrial production fell 1.6% in February from January, more than estimates of 1.3%.
The greenback, meanwhile, was down against the pound, with GBP/USD up 0.03% and trading at 1.5930.
The U.S. currency was up against the yen, with USD/JPY trading up 0.46% at 81.22, and flat against the Swiss franc, with USD/CHF trading at 0.9154.
The dollar was down against its counterparts in Canada, Australia and New Zealand, with USD/CAD down 0.14% at 0.9888, AUD/USD up 0.15% at 1.0406 and NZD/USD up 0.07% at 0.8218.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.06% at 79.75.
Later Wednesday, the U.S. is to produce government data on crude oil stockpiles.