Investing.com - The dollar turned mostly higher against a basket of other major currencies on Thursday, as data showing that the number of people filing unemployment assistance in the U.S. last week fell to a five-week low sparked optimism over the strength of the job market.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 21 declined by 9,000 to 282,000 from the previous week’s total of 291,000. Analysts had expected initial jobless claims to fall by 1,000 to 290,000 last week.
Another report showed that the U.S. service sector expanded at the fastest rate this month since September. Research group Markit said the preliminary reading of its services purchasing managers index rose to 58.6 from a final reading of 57.1 in February.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% to 97.29, off session lows of 96.32.
EUR/USD fell 0.27% to 1.0940, down from three-week highs of to 1.1049 hit earlier in the day.
The euro found support earlier, after data showed that the Gfk German consumer climate index was set to rise to 10.0 in April from a reading of 9.7 the previous month, compared to expectations for an uptick to 9.8.
But investors remained cautious as Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month.
Athens had appealed for the European Financial Stability Facility to return €1.2 billion it said it had overpaid when it transferred bonds intended for bank recapitalization this month.
The Greek government is expected to present a detailed list of proposed reforms to its eurozone partners by next Monday.
The pound also slipped lower, with GBP/USD easing 0.09% to 1.4868, pulling away from a one-week high of 1.4994.
The U.K. Office for National Statistics earlier reported that retail sales increased 0.7% last month, above forecasts for a gain of 0.4%, while core retail sales, which exclude automobile sales, rose 0.7% last month, compared to forecasts for a 0.4% rise.
Separately, the Confederation of British Industry said that its index of realized sales rose to 18 in March from 1 the previous month, exceeding expectations for a reading of 15.
Elsewhere, the dollar remained lower against the yen, with USD/JPY sliding 0.38% to 119.01 and held steady against the Swiss franc, with USD/CHF at 0.9589.
The Australian was steady, with AUD/USD at 0.7844, while NZD/USD slipped 0.22% to 0.7590.
USD/CAD dropped 0.36% to 1.2472 after Bank of Canada Governor Stephen Poloz said January’s surprise rate cut had "bought some time" to examine the effects of lower oil prices.
The commodity-linked loonie also benefited from rising oil prices, as news Saudi Arabia launched air strikes in Yemen to counter Iran-backed Houthi rebels fuelled concerns over a supply disruption in the region.