Investing.com - The dollar remained higher against a basket of other major currencies on Friday, as data showing that U.S. jobless claims fell to the lowest level since 1973 continued to support the greenback and as investors eyed additional U.S. reports due later in the day.
The dollar strengthened broadly after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 18 fell by 26,000 to a 40-year low of 255,000 from the previous week’s total of 281,000.
The data added to expectations for a U.S. rate hike in the near future. Federal Reserve Chair Janet Yellen said last week that the central bank is likely to raise rates "at some point this year."
Market participants were now eyeing the release of U.S. manufacturing activity and new home sales data later in the day, for further indications on the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.42% at 97.70.
EUR/USD slid 0.44% to 1.0936 after research group Markit said that Germany's preliminary manufacturing purchasing managers' index ticked down to 51.5 this month from 51.9 in June, disappointing expectations for an unchanged reading.
Germany's services PMI slipped to 53.7 in July from 53.8 in June, compared to expectations for a rise to 53.9.
Markit also said that France's preliminary manufacturing PMI fell to 49.6 this month from 50.7 in June, while the services PMI declined to 52.0 from 54.1.
For the entire euro zone, Markit said the composite PMI, which combines the manufacturing and the service sectors, slipped to 53.7 in July from 54.2 the previous month.
The pound was also lower, with GBP/USD down 0.26% at nearly two-week lows of 1.5473.
Elsewhere, the dollar was higher against the yen and the Swiss franc, with USD/JPY up 0.13% at 124.06 and with USD/CHF adding 0.17% to 0.9615.
The Australian and New Zealand dollars pushed lower, with AUD/USD down 1.18% at fresh six-year lows of 0.7268 and with NZD/USD declining 0.58% to 0.6567.
Earlier Friday, data showed that New Zealand's trade balance swung into a deficit of NZ$60 million in June from a surplus of NZ$350 million the previous month. Analysts had expected the trade surplus to narrow to NZ$100 million last month.
The export-related currencies also weakened after data showed that the Markit flash manufacturing PMI for China fell to 48.2 in July from 49.4 in June.
Meanwhile, USD/CAD rose 0.36% to trade at an 11-year peak of 1.3082.