The dollar extended its risk-appetite-inspired decline

The dollar extended its risk-appetite-inspired decline Thursday after a successful 30-year Treasury auction.

The greenback fell to a one-week low against the euro, U.K. pound and Swiss franc, and an intraday low against the yen, as Treasury yields came off multi-month highs.

"The dollar is following yields," said Dan Katzive, a foreign exchange strategist at Credit Suisse in New York.

"When yields are rising rapidly, the dollar gets a bid," he said. "Lower yields keep private demand at bay."

The decline in yields knocked any remaining support the dollar may have been deriving Thursday, and sent traders in search of other currencies.

The robust demand Thursday contrasted with recent operations that had largely disappointed the market, spurring yields for the 10-year note above 4.0%. But, the 10-year dipped to as low as 3.823% after the auction, while the 30-year bond's yield also dropped sharply from its intraday high of 4.84% to as low as 4.665%.

The dollar had already been on a downtrend Thursday, with a rise in commodities and stocks.

The boost to risk appetite came after retail sales and jobs data Thursday that suggested the economy continues to edge toward stabilization.

The euro recently rose as high as $1.4178, while the pound advanced to $1.6618. The dollar fell to JPY97.28 and CHF1.0649.

Win Thin, a senior currency strategist at Brown Brothers Harriman, added that market psychology is "just very dollar bearish" right now.

Thursday afternoon in New York, the euro was at $1.4136 from $1.3987 late Wednesday. The dollar was at JPY97.55 from JPY98.28, according to EBS. The euro was at JPY137.89 from JPY137.47, and the U.K. pound was at $1.6584 from $1.6355. The dollar was at CHF1.0686 from CHF1.0814 late Wednesday.