Investing.com - The dollar remained lower against other major currencies on Thursday, after the release of mixed U.S. data, but it was still close to a one-month peak amid hopes for an upcoming U.S. tax overhaul and for a December rate hike by the Federal Reserve.
Data on Thursday showed that U.S. economic growth in the second quarter was revised up more than expected.
Separately, the U.S. Department of Labor said initial jobless claims increased more than expected last week.
The greenback had strengthened broadly following reports on Wednesday that U.S. President Donald Trump proposed the biggest U.S. tax overhaul in three decades.
The proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.
The U.S. dollar was already supported by fresh expectations for a December rate hike by the Fed following hawkish remarks by the central bank's Chair Janet Yellen on Tuesday.
EUR/USD gained 0.30% to 1.1781, off the previous session's one-month lows of 1.1719, while GBP/USD rose 0.34% to 1.33429.
Political uncertainty persisted in Germany, but Chancellor Angela Merkel seemed closer to forming a government after Wolfgang Schaeuble decided to become president of the parliament, allowing another party to take the Finance Ministry.
In the UK, Bank of England Governor Mark Carney said in a speech on Thursday that Britain’s economic prosperity will depend on the deal made to leave the European Union.
Carney added that stable inflation is the best contribution that monetary policy can make to the public good.
The yen moved higher, with USD/JPY down 0.10% at 112.73, while USD/CHF held steady at 0.9718.
Earlier Thursday, Bank of Japan Governor Haruhiko Kuroda said in a speech that the country's economic expansion is highly sustainable and that he expects inflation to accelerate towards the central bank's 2% target.
Elsewhere, the Australian dollar remained weaker, with AUD/USD down 0.19% at 0.7834, the lowest since July 18, while NZD/USD added 0.21% to 0.7214.
In a widely expected move, the Reserve Bank of New Zealand left interest rates unchanged at 1.75% at the conclusion of its policy meeting on Thursday.
Commenting on the decision, the central bank said that it doesn’t expect to raise interest rates for some time as the economic growth outlook weakens and inflation slows.
Meanwhile, USD/CAD edged 0.11% lower to1.2461, off a three-week high of 1.2519 hit earlier in the day.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% at 93.05 by 10:55 a.m. ET (14:55 GMT), off the day's one-month highs of 93.50.