Investing.com - The dollar trimmed losses against a basket of other major currencies on Thursday, but remained under pressure after data showed that U.S. jobless claims rose more than expected last week and as markets awaited additional U.S. economic reports later in the day.
In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending May 16 rose by 10,000 to 274,000 from the previous week's total of 264,000.
Analysts had expected initial jobless claims to rise by 7,000 to 271,000 last week.
The data came after Wednesday’s minutes of the Fed’s April meeting did little to alter expectations that the central bank will hold off on raising rates until later this year, with most officials believing that a June rate hike would be premature.
Investors were turning their attention to Friday’s U.S. inflation data and a speech by Federal Reserve Chair Janet Yellen for fresh indications on how the economy is performing.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.26% to 95.38, off session lows of 95.05.
EUR/USD was up 0.31% to 1.1127 after rising to session highs 1.1181 earlier in the session.
The single currency found support after data showed that the preliminary reading of the French composite purchasing managers' index rose to 51.0 up from 50.6 in April, moving further above the 50 level which separates expansion and contraction.
But activity in Germany, the euro area’s largest economy slowed to a five month low, adding to concerns that economic growth is losing momentum
The preliminary euro zone composite PMI slid to a three month low of 53.4, down from 53.9 in April.
Greek debt concerns also weighed after a government official warned on Wednesday that Athens will be unable to make a €305 million payment to the International Monetary Fund due on June 5 if a cash-for-reforms deal with its international lenders is not reached by then.
The pound was also higher, with GBP/USD up 0.89% to 1.5674 after data showed that U.K. retail sales jumped 1.2% last month, far more than forecasts for an increase of 0.4%.
Elsewhere, the dollar was still lower against the yen and the Swiss franc, with USD/JPY down 0.14% to 121.19 and with USD/CHF declining 0.30% to 0.9344.
The Australian dollar was steady, with AUD/USD at 0.7877, while NZD/USD edged down 0.14% to 0.7299.
Sentiment on the export-related currencies remained vulnerable after data showed that China's HSBC Flash Manufacturing Purchasing Managers' Index rose to 49.1 this month from 48.9 in April, falling short of expectations for an increase to 49.3.
USD/CAD rose 0.22% to trade at 1.2234.
Later in the day, the U.S. was to release data on existing home sales and manufacturing activity in the Philadelphia region.