The US dollar erased earlier gains and slipped against most major currencies on Thursday on renewed market worries over Ukraine despite strong US durable goods data.

The greenback initially advanced against a basket of currencies after the US Commerce Department reported new orders for manufactured durable goods in March rose 2.6 percent to 234.8 billion dollars, beating market expectations.

Meanwhile, the number of Americans who initially applied for jobless benefits last week added 24,000 to a seasonally adjusted 329,000, said the Labor Department. Analysts believe the number is still in line with the recovery trend.

However, the dollar lost ground later in the session on escalated tensions over Ukraine, while the yen was boosted by increased demand for safe-haven assets.

Earlier in the day, Ukrainian Interior Ministry said five " separatist militants" were killed during "counter-terror" actions at three checkpoints set by a pro-Russia militia outside the city of Slavyansk.

Russian President Vladimir Putin Thursday called "anti-terror operation" conducted by Ukraine troops in its east "a serious crime," warning of "consequences" if Kiev used the army against its own people.

Meanwhile, the euro was under pressure as European Central Bank (ECB) President Mario Draghi on Thursday once again indicated that the central bank may apply more monetary stimulus to boost economy. He also said the exchange rate is an increasingly important factor for the ECB to assess price stability outlook.

In late New York trading, the euro rose to 1.3825 dollars from 1.3816 dollars of the previous session, while the British pound increased to 1.6798 dollars from 1.6781 dollars. The Australian dollar dropped to 0.9259 dollars from 0.9284 dollars.

The dollar bought 102.34 Japanese yen, lower than 102.42 yen in the previous session. The dollar moved down to 0.8820 Swiss francs from 0.8832 Swiss francs, and it edged down to 1.1026 Canadian dollars from 1.1032 in the previous session.