Investing.com - The dollar trimmed gains but remained supported against other major currencies on Thursday, as the release of upbeat U.S. economic growth and jobless claims data added to optimism over the strength of the economy.
EUR/USD slid 0.30% to 1.0732, the lowest since March 21.
The dollar was supported after official data showed that the third estimate of fourth quarter gross domestic product was at 2.1%, up from the previous reading of a 1.9% expansion. Analysts had expected a growth rate of 2.0%.
Separately, the U.S. Department of Labor said initial jobless claims declined by 3,000 to 258,000 in the week ending March 25 from the previous week’s total of 261,000. Analysts expected jobless claims to fall by 13,000 to 248,000 last week.
Meanwhile, the euro remained under pressure after data earlier showed that German annual inflation slowed to 1.6% this month from 2.2% in February, which was the highest rate since August 2012.
The data came after ECB chief economist Peter Praet said the bank is still not convinced that the recent pickup in inflation will be durable and reiterated that underlying inflation pressures remain subdued.
Elsewhere, GBP/USD climbed 0.52% to 1.2501.
USD/JPY rose 0.22% to 111.29, while USD/CHF held steady at 0.9964.
The Australian and New Zealand dollars were little changed, with AUD/USD at 0.7669 and with NZD/USD at 0.7029.
Meanwhile, USD/CAD held steady at 1.3295.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.16% at 99.94, off one-and-a0half week highs of 100.09 hit earlier in the day.