Investing.com - The dollar was lower against the euro and the yen on Thursday, after U.S. first quarter growth was revised down sharply, bolstering expectations that the Federal Reserve will keep rates hold for longer.
EUR/USD was at 1.3638, not far from the more than two-week high of 1.3650 reached on Wednesday.
The pair was likely to find support at 1.3600 and resistance at 1.3670.
The dollar weakened across the board after the Commerce Department said U.S. gross domestic product contracted at an annual rate of 2.9% in the first three months of the year, compared to the consensus forecast for a decline of 1.7%.
U.S. first quarter GDP was initially reported to have increased by 0.1%, but was subsequently revised to show a contraction of 1.0%.
The difference between the second and third estimate was the largest since records began in 1976, the Commerce Department said.
A separate report showed that U.S. durable goods orders fell 1.0% in May, the first decline in four months.
The weak data indicated that the Federal Reserve may need to keep rates on hold for an extended period to support the recovery.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was at 80.21 just above Wednesday’s five week lows of 80.17.
The dollar was lower against the yen, with USD/JPY slipping 0.11% to 101.75, close to the two week low of 101.61 set on Wednesday.
Elsewhere Thursday, the euro was almost unchanged against the yen, with EUR/JPY at 138.78.