Investing.com - The dollar rose against a basket of other major currencies on Thursday, recovering from the previous session's fall to a three-week low as markets awaited the release of U.S. data later in the day.
The dollar regained some strength after weakening broadly on Wednesday as investors looked ahead to U.S. retail sales and jobless claims data due later in the day for further indications on the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.47% at 95.04, off Wednesday's three-week lows of 94.30.
EUR/USD declined 0.45% to 1.1270 as uncertainty over Greece continued, although hopes for an agreement on a cash-for-reforms deal lent some support.
Greece’s bailout agreement with the European Union and the International Monetary Fund is set to expire at the end of this month and it cannot make further debt repayments without a new deal.
The dollar strengthened against the yen, with USD/JPY up 0.82% to 123.65, off Wednesday’s lows of 122.45.
The yen had rallied on Wednesday after Bank of Japan Governor Haruhiko Kuroda suggested that the relative value of the yen may not continue to fall.
Kuroda said the real effective exchange rate showed that the yen's levels were “significantly low".
The real effective exchange rate measures the yen’s levels relative to the currencies of Japan’s trading partners.
Kuroda also said the dollar may not necessarily rise further against the yen if the Federal Reserve raises interest rates, as the possibility of rate hikes is already priced into the market.
Elsewhere, GBP/USD dropped 0.41% to 1.5466, while USD/CHF advanced 0.43% to trade at 0.9354.
The Australian dollar was steady, with AUD/USD at 0.7734, while NZD/USD tumbled 1.50% to 0.7012.
The kiwi was hit after the Reserve Bank of New Zealand unexpectedly cut its benchmark interest rate to a record-low 3.25% from 3.50% on Thursday. It was the first time the central bank lowered rates since 2011.
Commenting on the decision, RBNZ Governor Graeme Wheeler said the central bank has factored in another rate cut into its forecasts and is looking for a further fall in the local currency.
USD/CAD gained 0.38% to trade at 1.2300.