Investing.com - The dollar edged up and hovered close to a fresh 14-year peak against the other majors currencies on Thursday, as strong U.S. data continued to boost optimism over the strength of the economy.
EUR/USD slipped 0.19% to 1.0671, just off Wednesday’s 11-month trough of 1.0663.
The U.S. Department of Labor said initial jobless claims in the week ending November 12 fell by 19,000 to 235,000, the lowest level since 1973. Analysts expected jobless claims to rise by 3,000 to 257,000 last week.
Separately, the Commerce Department said housing starts surged 25% in October to hit 1.323 million units, while building permits rose 0.3% to 1.229 million units.
Data also showed that U.S. consumer prices rose 0.4% in October, in line with expectations. Year-over-year, consumer prices increased by 1.6% last month, its highest reading since October 2014.
The upbeat data added to optimism over the strength of the U.S. economy and fueled further expectations for a December rate hike by the Federal Reserve.
Earlier in the day, Fed Chair Janet Yellen warned of the danger of waiting too long to tighten monetary policy.
The comments came a day after Philadelphia Fed head Patrick Harker said that he was in favor of raising interest rates, while Cleveland Fed President Loretta Mester said the Fed must not overreact to market moves following the shock result of the presidential election.
Elsewhere, GBP/USD eased 0.08% to 1.2432 after the U.K. Office for National Statistics reported that retail sales increased 1.9% in October, compared to expectations for a 0.4% rise.
Year-on-year, retail sales climbed 7.4% last month, beating expectations for a 5.3% rise.
Core retail sales, which exclude automobile sales and fuel, gained 2.0% in October.
USD/JPY gained 0.38% to 109.50, just off Wednesday’s five-month high of 109.76, while USD/CHF rose 0.22% to 1.0042.
The Australian dollar remained lower, with AUD/USD down 0.19% at 0.7465, while NZD/USD held steady at 0.7071.
Earlier Thursday, the Australian Bureau of Statistics said the number of employed people increased by 9,800 in October, disappointing expectations for a 20,000 gain.
The report also showed that Australia’s unemployment rate remained unchanged at 5.6% last month, in line with expectations.
Meanwhile, USD/CAD edged down 0.13% to trade at 1.3427.
The commodity-related loonie found support as oil prices bounced higher on Thursday, after Saudi Energy Minister Khalid al-Falih said he was optimistic that OPEC would formalize its oil output deal.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at 100.55, just off a fresh 14-year peak of 100.62 hit earlier on the session.