Investing.com - The dollar remained mostly lower against the other major currencies on Thursday, as fresh uncertainty over the strength of the U.S. job market continued to weigh on the greenback and investors eyed Friday's report on nonfarm payrolls.
The dollar was lower against the euro, with EUR/USD up 0.15% to 1.3618.
The euro dropped to four-month lows against the greenback after the European Central Bank lowered its benchmark interest rate to a record-low 0.15% from 0.25%, compared to expectations for a cut to 0.1%.
Speaking at the ECB’s post-policy meeting press conference, Mario Draghi said the rate decision would contribute to bringing inflation rates closer to the centrak bank's target of just below 2% and that it is determined to safeguard this anchoring.
Draghi added that key ECB rates will remain at present levels for an extended period of time, but that the bank is prepared to act swiftly with further monetary easing measures, including asset-backed security purchases, in case of a prolonged period of low inflation.
To support bank lending, Mario Draghi said the ECB we will be conducting a series of Targeted Longer Term Refinancing Operations (TLTROs), all of which will mature in September 2018. Two successive TLTROs are scheduled to be launched in September and December 2014, he added.
In the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 31 increased by 8,000 to 312,000 from the previous week’s revised total of 304,000. Analysts had expected jobless claims to rise by 6,000 to 310,000 last week.
The pound was higher against the dollar, with GBP/USD rising 0.35% to 1.6795.
In a widely expected move, the Bank of England’s Monetary Policy Committee voted to keep interest rates on hold at their current record low of 0.5%. The bank also made no change in its quantitative easing program, which remains at £375 billion.
The dollar was lower against the yen and the Swiss franc, with USD/JPY shedding 0.32% to 102.42 and with USD/CHF down 0.27% to 102.43.
The greenback was steady to lower against the Australian, New Zealand and Canadian dollars, with AUD/USD gaining 0.39% to 0.9313, NZD/USD climbing 0.47% to 0.8461 and USD/CAD edging up 0.07% to 1.0947.
Official data showed that building permits in Canada rose 1.1% in April, confounding expectations for an increase of 1.4%, after a 3.2% decline in March, whose figure was revised down from a previously estimated 3% drop.
Separately, Canada's Ivey purchasing managers' index fell to 48.2 last month, from a reading of 54.1 in April, compared to expectations for a rise to 56.0.
In Australia, official data earlier showed that the trade balance swung into a deficit of A$0.12 billion in April, from an upwardly revised surplus of A$0.90 billion in March. Analysts had expected the trade surplus to narrow to A$0.40 billion in April.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% to 80.60.
Market participants now turned their attention to Friday's report on U.S. nonfarm payrolls for further indications on the strength of the U.S. job market after a data on Wednesday showed that private sector employment rose less than expected last month.