Investing.com - The dollar was broadly lower against a basket of other major currencies on Thursday, as the minutes of the Federal Reserve's latest policy meeting weighed and as markets awaited a string of U.S. economic reports later in the day.
The dollar weakened as Wednesday’s minutes of the Fed’s April meeting did little to alter expectations that the central bank will hold off on raising rates until later this year, with most officials believing that a June rate hike would be premature.
Investors were turning their attention to Friday’s U.S. inflation data and a speech by Federal Reserve Chair Janet Yellen for fresh indications on how the economy is performing.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.62% to 95.06, pulling away from Wednesday's two-week high of 95.94.
EUR/USD gained 0.66% to 1.1167 after data showed that the preliminary reading of the French composite purchasing managers' index rose to 51.0 up from 50.6 in April, moving further above the 50 level which separates expansion and contraction.
The French services PMI rose to 51.6 from 51.4 and the manufacturing PMI rose to a 12-month high of 49.3 from 48.0 in April.
But activity in Germany, the euro area’s largest economy slowed to a five month low, adding to concerns that economic growth is losing momentum
The preliminary euro zone composite PMI slid to a three month low of 53.4, down from 53.9 in April.
Greek debt concerns also weighed after a government official warned on Wednesday that Athens will be unable to make a €305 million payment to the International Monetary Fund due on June 5 if a cash-for-reforms deal with its international lenders is not reached by then.
The pound was also higher, with GBP/USD up 0.96% to 1.5686 data showed that U.K. retail sales jumped 1.2% last month, far more than forecasts for an increase of 0.4%.
Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY down 0.23% to 121.05 and with USD/CHF declining 0.55% to 0.9319.
The Australian dollar was higher, with AUD/USD up 0.21% to 0.7893, while NZD/USD held steady at 0.7312.
Sentiment on the export-related currencies remained vulnerable after data showed that China's HSBC Flash Manufacturing Purchasing Managers' Index rose to 49.1 this month from 48.9 in April, falling short of expectations for an increase to 49.3.
USD/CAD slipped 0.13% to trade at 1.2192.
Later in the day, the U.S. was to release a string of reports including initial jobless claims, existing home sales and a look at manufacturing activity in the Philadelphia region.