NEW YORK, June 2 (Xinhua) -- The U.S. dollar retreated in late trading on Thursday as improved market sentiment bolstered demand for higher-risk currencies such as the Australian dollar and sterling.

       The dollar index, which measures the greenback against six major peers, fell 0.66 percent to 101.8240.

       In late New York trading, the euro increased to 1.0743 U.S. dollars from 1.0659 dollars in the previous session, and the British pound rose to 1.2568 dollars from 1.2493 U.S. dollars in the previous session. The Australian dollar rose to 0.7256 U.S. dollar from 0.7188 dollar.

       The U.S. dollar bought 129.86 Japanese yen, lower than 130.16 Japanese yen of the previous session. The U.S. dollar decreased to 0.9581 Swiss franc from 0.9626 Swiss franc, and it was down to 1.2577 Canadian dollars from 1.2632 Canadian dollars.