Investing.com - The dollar edged lower against against the other major currencies on Friday, as sentiment on the greenback remained vulnerable ahead of the highly-anticipated U.S. nonfarm payrolls report due later in the day.
USD/JPY dropped 0.75% to 119.18.
Investors were looking ahead to the key-U.S. jobs report due later Friday, for further indications on the strength of the economy and signs of a potential rate hike by the Federal Reserve this month.
Data on Thursday showed that the number of individuals filing for initial jobless benefits in the U.S. in the week ending August 29 increased by 12,000 to 282,000 from the previous week’s total of 270,000, compared to expectations for a 5,000 rise.
First-time jobless claims have held below the 300,000-level for 26 consecutive weeks, which is usually associated with a firming labor market.
The dollar was lower against the euro, with EUR/USD up 0.18% at 1.1141, off the previous session's more than two-week lows of 1.1086.
The single currency came under pressure after the European Central Bank indicated on Thursday that it could expand its quantitative easing program amid increased downside risks to its inflation outlook.
The ECB lowered its forecast for growth and inflation, citing oil prices and slowing growth in China.
Earlier Thursday, the ECB kept its benchmark interest rate at a record-low 0.05%, in line with the consensus expectation.
Earlier Friday, official data showed that German factory orders declined by 1.4% in July, compared to expectations for a 0.6% slip. Factory orders increased by 1.8% in June, whose figure was revised from a previously estimated gain of 2.0%.
The dollar was steady against the pound, with GBP/USD at three-month lows of 1.5245 and was higher against the Swiss franc, with USD/CHF adding 0.13% to 0.9743.
The Australian dollar and New Zealand dollars were weaker, with AUD/USD down 0.50% at 0.6984 and with NZD/USD sliding 0.47% to 0.6369.
Meanwhile, USD/CAD rose 0.26% to trade at 1.3213.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 96.23.