Investing.com - The dollar pared losses against the yen on Thursday after official data showed that U.S. initial jobless claims fell more than expected last week, while the pound extended gains against the dollar, rallying more than 1.2%.
During European afternoon trade, the dollar pulled away from session lows against the yen, with USD/JPY down 0.28% to 99.21, off lows of 98.99.
The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 16,000 to a seasonally adjusted 339,000, last week compared to expectations for a decrease of 4,000 to 351,000.
Jobless claims for the preceding week were revised up to 355,000 from a previously reported increase of 352,000.
The dollar remained sharply lower against sterling, with GBP/USD jumping 1.34% to 1.5470 after official data showed that the U.K. economy returned to growth in the first quarter, avoiding a triple-dip recession.
U.K. gross domestic product expanded by a seasonally adjusted 0.3% in the three months to March, above expectations for a 0.1% gain and was 0.6% higher year-on-year.
The dollar was close to session lows against the euro, with EUR/USD advancing 0.47% to 1.3076.
Sentiment on the single currency remained fragile as speculation over a rate cut by the European Central Bank intensified after weak German economic data earlier in the week.
The yield on peripheral euro zone bonds ticked higher on Thursday amid renewed concerns over the economic outlook for the region after data showed that the unemployment rate in Spain climbed to 27.16% in the first quarter, with more than six million people unemployed.
The dollar was weaker against the Swiss franc, with USD/CHF losing 0.34% to trade at 0.9433.
The greenback extended losses against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.51% to 1.0334, NZD/USD rallying 0.95% to 0.8555 and USD/CAD falling 0.51% to 1.0201.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.59% to 82.56.
During European afternoon trade, the dollar pulled away from session lows against the yen, with USD/JPY down 0.28% to 99.21, off lows of 98.99.
The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 16,000 to a seasonally adjusted 339,000, last week compared to expectations for a decrease of 4,000 to 351,000.
Jobless claims for the preceding week were revised up to 355,000 from a previously reported increase of 352,000.
The dollar remained sharply lower against sterling, with GBP/USD jumping 1.34% to 1.5470 after official data showed that the U.K. economy returned to growth in the first quarter, avoiding a triple-dip recession.
U.K. gross domestic product expanded by a seasonally adjusted 0.3% in the three months to March, above expectations for a 0.1% gain and was 0.6% higher year-on-year.
The dollar was close to session lows against the euro, with EUR/USD advancing 0.47% to 1.3076.
Sentiment on the single currency remained fragile as speculation over a rate cut by the European Central Bank intensified after weak German economic data earlier in the week.
The yield on peripheral euro zone bonds ticked higher on Thursday amid renewed concerns over the economic outlook for the region after data showed that the unemployment rate in Spain climbed to 27.16% in the first quarter, with more than six million people unemployed.
The dollar was weaker against the Swiss franc, with USD/CHF losing 0.34% to trade at 0.9433.
The greenback extended losses against its Australian, New Zealand and Canadian counterparts, with AUD/USD rising 0.51% to 1.0334, NZD/USD rallying 0.95% to 0.8555 and USD/CAD falling 0.51% to 1.0201.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.59% to 82.56.