Investing.com - The dollar was mostly higher against a basket of other major currencies on Thursday, as comments by New York Federal Reserve President William Dudley and the minutes of the U.S. Fed's latest policy meeting supported the greenback.
The dollar strengthened after New York Fed President William Dudley said Wednesday that the timing of a rate hike depends on economic data and added that a rate hike in June could still be possible if the labor market recovery remained strong.
Fed Governor Jerome Powell said he would be willing to start tightening policy despite current low levels of inflation, adding the Fed could act in June if economic data over the next two months showed that the recovery remained on track.
Meanwhile, Wednesday’s minutes of the Fed’s March meeting showed that several officials believe the economic outlook is likely to warrant an interest rate hike in June.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.36% to 98.62.
EUR/USD slid 0.33% to 1.0744, even as data earlier showed that German industrial production rose 0.2% in February, ahead of expectations for a 0.1% gain as the production of energy and capital goods increased.
Another report showed that German exports rose 1.5% in February while imports also increased, pointing to growth in the region’s largest economy.
The pound was also lower, with GBP/USD dropping 0.53% to 1.4789.
In a report, the U.K. Office for National Statistics said the country's trade deficit widened to £10.34 billion in February from £9.17 billion in January, whose figure was revised from a previously estimated deficit of £8.41 billion.
Analysts had expected the trade deficit to hit £9.00 billion in February.
Earlier in the day, industry data showed that U.K. house prices rose 0.4% last month, exceeding expectations for a 0.2% gain. February's change in house prices was revised to a 0.4% fall from a previously estimated 0.3% downtick.
Later Thursday, the Bank of England was expected to leave its benchmark interest rate and asset purchase facility program on hold.
Elsewhere, the dollar was steady against the yen, with USD/JPY at 120.18 and higher against the Swiss franc, with USD/CHF climbing 0.51% to 0.9709.
The Australian and New Zealand dollars were higher, with AUD/USD gaining 0.42% to 0.7715 and NZD/USD advancing 0.47% to 0.7588.
Meanwhile, USD/CAD was little changed at 1.2557.
Later in the day, the Institute of Supply Management is to release data on U.S. service sector activity.