Investing.com - The dollar was broadly higher against a basket of other major currencies on Thursday, recovering from sharp losses posted on Wednesday due to downbeat U.S. data, as markets eyed additional U.S. economic reports to be released later in the day.
The greenback came under broad selling pressure on Wednesday after a string of disappointing U.S. data further dampened expectations for an early rate hike by the Federal Reserve.
Official data showed that U.S. retail sales fell 0.3% last month, more than the expected 0.1% slip, while core retail sales, which exclude automobiles, dropped 0.2% in September, confounding expectations for a 0.3% gain.
A separate report showed that U.S. producer price inflation slipped 0.1% last month, disappointing expectations for a 0.1% rise, while the Federal Reserve of New York reported that its manufacturing index tumbled to a six-month low of 6.2 in October from a reading of 27.5 the previous month.
The US Dollar Index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.24% to 85.08.
EUR/USD pulled away from a three-week high and was last down 0.23% to trade at 1.2806.
The euro found some support after revised data showed that euro zone consumer price inflation remained at 0.3% in September, in line with expectations.
Core CPI, which excludes food, energy, alcohol, and tobacco, ticked up to 0.8% last month from an initial estimate of 0.7%.
But the single currency remained fragile after data on Tuesday showed that the euro zone's industrial production declined more than expected in August, while a separate report showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.
The pound slipped near 11-month lows, with GBP/USD down 0.13% at 1.5997.
The yen was little changed, with USD/JPY trading at 105.88, while the Swiss franc edged lower, with USD/CHF rising 0.20% to 0.9422.
The commodity linked dollars were broadly weaker, with AUD/USD tumbling 1.08% to 0.8735 and NZD/USD down 0.69% to 0.7930, while USD/CAD gained 0.45% to 1.1301.
Earlier Wednesday, the Melbourne Institute said its inflation expectations for the next 12 months in Australia slipped to 3.4% last month, from 3.5% in August.
In New Zealand, a report showed that the Business Manufacturing Index rose to a 13-month high of 58.1 in September from 57.0 in August, whose figure was revised up from a previously estimated reading of 56.5.
Later in the day, the U.S. was to release the weekly report on initial jobless claims as well as data on industrial production and manufacturing activity in the Philadelphia region.