Investing.com - The dollar turned broadly higher against the other major currencies on Thursday, as U.S. budget concerns weighed on demand for risk-related assets, even as disappointing U.S. data limited the greenback's gains.
During U.S. morning trade, the dollar was higher against the yen, with USD/JPY up 0.50% to 98.92.
Industry data showed that U.S. pending home sales dropped 1.6% in August, more than the expected 1% decline, following a downwardly revised 1.4% fall the previous month.
Earlier Thursday, official data showed that the U.S. economy expanded by 2.5% in the second quarter, confounding expectations for a 2.6% expansion.
In addition, the U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. in the week ending September 20 fell by 5,000 to a seasonally adjusted 305,000, from a downwardly revised 310,000 the previous week.
The data came after a recent string of economic reports underlined concerns over the outlook for the U.S. economic recovery. Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.
Separately, U.S. budget concerns weighed on market sentiment as Republican leaders in the U.S. House of Representatives notified members that a vote on raison the debt limit could come as early as Friday.
The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond October 1.
Elsewhere, the euro was lower against the dollar, with EUR/USD slipping 0.29% to 1.3486.
Sentiment on the euro remained fragile after members of Silvio Berlusconi's party renewed threats on Wednesday evening to resign if their leader was expelled from parliament due to a conviction for tax fraud.
The dollar was higher against the pound and the Swiss franc, with GBP/USD retreating 0.45% to 1.6009 and USD/CHF edging up 0.16% to trade at 0.9106.
Official data earlier showed that U.K. GDP expanded by 0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. GDP rose 1.3% in the three months to June, compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March.
Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.
Elsewhere, the greenback was mixed to higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD inching 0.09% lower to 0.9359, NZD/USD climbing 0.51% to 0.8281 and USD/CAD edging up 0.12% to 1.0326.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% to 80.67.
During U.S. morning trade, the dollar was higher against the yen, with USD/JPY up 0.50% to 98.92.
Industry data showed that U.S. pending home sales dropped 1.6% in August, more than the expected 1% decline, following a downwardly revised 1.4% fall the previous month.
Earlier Thursday, official data showed that the U.S. economy expanded by 2.5% in the second quarter, confounding expectations for a 2.6% expansion.
In addition, the U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. in the week ending September 20 fell by 5,000 to a seasonally adjusted 305,000, from a downwardly revised 310,000 the previous week.
The data came after a recent string of economic reports underlined concerns over the outlook for the U.S. economic recovery. Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.
Separately, U.S. budget concerns weighed on market sentiment as Republican leaders in the U.S. House of Representatives notified members that a vote on raison the debt limit could come as early as Friday.
The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond October 1.
Elsewhere, the euro was lower against the dollar, with EUR/USD slipping 0.29% to 1.3486.
Sentiment on the euro remained fragile after members of Silvio Berlusconi's party renewed threats on Wednesday evening to resign if their leader was expelled from parliament due to a conviction for tax fraud.
The dollar was higher against the pound and the Swiss franc, with GBP/USD retreating 0.45% to 1.6009 and USD/CHF edging up 0.16% to trade at 0.9106.
Official data earlier showed that U.K. GDP expanded by 0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. GDP rose 1.3% in the three months to June, compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March.
Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.
Elsewhere, the greenback was mixed to higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD inching 0.09% lower to 0.9359, NZD/USD climbing 0.51% to 0.8281 and USD/CAD edging up 0.12% to 1.0326.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.32% to 80.67.