U.S. services industry growth slowed further in March, while a measure of prices paid by businesses for inputs dropped to a four-year low, which bodes well for the inflation outlook.

Oil prices rose in early Asian trade on Thursday on concerns of lower supply as major producers are keeping output cuts in place and on signs of stronger economic growth in the U.S., the world's biggest oil consumer.

The dollar was pinned beneath recent peaks on Thursday with traders taking remarks from Federal Reserve Chair Jerome Powell as reassuring on the likelihood of interest rate cuts this year while waiting for the latest U.S. labour market readout.

Prices in British shops rose at the slowest pace in more than two years in March, the British Retail Consortium (BRC) said on Tuesday, adding to signs that the country's inflation squeeze is now fading fast.

Overall manufacturing activity in the euro zone took a further turn for the worse in March, contracting at a steeper pace than in February, but there were signs of recovery in Italy and Spain, surveys showed.

British manufacturers reported their first overall growth in activity in 20 months in March thanks to recovering demand in their home market, according to a survey that added to signs that last year's shallow recession has ended.