Investing.com - The dollar remained moderately lower against the other major currencies on Wednesday, as comments by European Central Bank President Mario Draghi boosted the euro, although the greenback remained broadly supported by hopes for an upcoming U.S. rate hike.
EUR/USD gained 0.37% to 1.1168, easing off a two-and-a-half week low of 1.1105 hit earlier in the session.
The euro strengthened after Mr. Draghi said that "more time is needed to determine in particular whether the loss of growth momentum in emerging markets is of a temporary or permanent nature and to assess the driving forces behind the recent episodes of severe financial turbulence."
The comments dampened hopes that the ECB could implement additional stimulus measures to bolster growth in the euro zone.
Earlier Wednesday, research group Markit reported on Wednesday that Germany's manufacturing purchasing managers' index fell to 52.5 in September from 53.3 the previous month, while the services PMI ticked down to 54.3 from 54.9.
France's manufacturing PMI ticked up to 50.4 this month from 48.3 in August, while the services PMI rose to 51.2 from 50.6.
For the entire euro zone, the composite PMI, which includes both manufacturing activity and services, slipped to 53.9 in September, Markit reported, from a reading of 54.3 in August.
The dollar turned higher against the yen, with USD/JPY rising 0.26% to 120.46.
The dollar remained supported after comments by some Federal Reserve officials Monday night indicated that a U.S. rate hike is still on the cards this year.
Meanwhile, markets were still jittery after data earlier showed that China's Caixin manufacturing PMI fell to 47.0 this month from 47.3 in August, compared to expectations for a rise to 47.5.
The weak data added to concerns over a global economic slowdown.
Elsewhere, the dollar was higher against the pound, with GBP/USD down 0.74% at 1.5245 and was steady against the Swiss franc, USD/CHF at 0.9748.
The Australian and New Zealand dollars were weaker, with AUD/USD retreating 0.59% to 0.7048 and with NZD/USD shedding 0.22% to 0.6280.
Meanwhile, USD/CAD eased 0.08% to trade at 1.3257.
Statistics Canada reported on Wednesday that retail sales rose 0.5% in July, in line with expectations, while core retail sales, which exclude automobiles, were flat, compared to expectations for a 0.4% gain.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 96.40, off one-month highs of 96.65 reached earlier in the day.