Investing.com - The dollar was higher against the yen on Thursday after improved factory data out of China, while the euro remained supported after data showed that the recovery in the euro zone private sector continued in May.
USD/JPY hit 101.76, the highest since May 15 and was last up 0.13% to 101.51.
Market sentiment was boosted after data on Thursday showed that the preliminary reading of China’s HSBC manufacturing index rose to a five month high of 49.7 this month, but still remained just below the 50 level separating contraction from expansion.
Meanwhile, Wednesday’s minutes of the Federal Reserve’s April meeting indicated that the bank continues to see a slow improvement in the economy, but reiterated that rates are likely to remain on hold at record lows for some time after its asset purchase program ends.
EUR/USD was trading at 1.3677, after falling as low as 1.3654 earlier, not far from the two-and-a-half month trough of 1.3633 reached on Wednesday.
The euro found support after data showed that the recovery in the euro zone private sector continued in May. Manufacturing activity in the euro zone expanded at the slowest rate in six months, but the region’s service sector expanded at the fastest rate in almost three years.
Germany’s private sector continued to grow strongly this month but the French private sector fell back into contraction territory.
The pound moved lower, with GBP/USD sliding 0.16% to 1.6870. The drop in the pound came after data on Thursday confirmed that the U.K. economy grew 0.8% in the first three months of the year, disappointing some market expectations for an upward revision.
The dollar was almost unchanged against the Swiss franc, with USD/CHF at 0.8931.
The Australian and New Zealand dollars were slightly lower, with AUD/USD dipping 0.08% to 0.9243 and NZD/USD down 0.20% to 0.8555. USD/CAD was steady at 1.0915.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.06% to 80.17.