Investing.com - The dollar edged up to a four-day high against the other major currencies on Thursday, as investors eyed the release of U.S. second-quarter economic growth data later in the day for further indications on the strenght 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 0.14% at 95.43, the highest level since August 21.
The dollar was higher against the yen, with USD/JPY up 0.27% to 120.24.
The dollar remained supported after the U.S. Commerce Department reported on Wednesday that total durable goods orders increased by 2.0% last month, compared to expectations for a decline of 0.4%.
Core durable goods orders, which exclude volatile transportation items, inched up 0.6%, topping forecasts for an increase of 0.4%.
The greenback's gains were limited however, after New York Federal Reserve President William Dudley said Wednesday that the case for a September rate hike was “less compelling”, given the threat posed to the U.S. economy from recent turmoil in markets.
Meanwhile, investors continued to monitor developments in China. Shares in Shanghai rallied around 5% by the close of trading on Thursday, snapping six days of heavy losses.
Recent steep declines in Chinese equity markets have sparked fears that they will hasten an economic downturn and undermined investor confidence in the government’s ability to revitalize economic growth.
The dollar was also higher against the euro, with EUR/USD shedding 0.26% to 1.1285.
The single currency came under broad selling pressure on Wednesday after the European Central Bank warned that the risk to its medium-term inflation target has increased and it is prepared to expand its economic stimulus program if necessary.
The single currency rose to seven-month highs earlier in the week as investors fled to the relative safe-haven currencies amid intense volatility in markets.
Investors have also been borrowing the low-yielding euro to fund investment in risk assets.
The dollar edged lower against the pound, with GBP/USD up 0.15% at 1.5484 and was steady against the Swiss franc, with USD/CHF at 0.9546.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.58% at 0.7159 and with NZD/USD climbing 0.68% to 0.6482.
The Antipodean currencies have been sensitive to news out of China, a top export market for Australia and New Zealand.
Meanwhile, USD/CAD was down 0.67% to 1.3203.