Investing.com - The dollar was mixed against a basket of other major currencies on Thursday, as the Federal Reserve's most recent policy statement lowered hopes for a rate hike in the next months and as investors eyed upcoming data on U.S. jobless claims.
The dollar came under pressure after the Fed cited weakness in the U.S. economy, leading investors to believe that the central bank will not raise interest rates in the near future.
In its monthly policy statement on Wednesday, the Fed said it will take into account labor market conditions, inflationary pressures and expectations of international financial developments when it decides on the timing of a rate increase.
The statement came after data on Wednesday showed that the U.S. gross domestic product grew just 0.2% in the three months to March, slowing from 2.2% in the final quarter of 2014. It was the slowest rate of growth in a year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% to 95.09.
EUR/USD rose 0.28% to nine-week highs of 1.1158.
The single currency found support after official data showed that the euro zone's consumer price inflation was flat this month, compared to expectations for a decline of 0.1% and following a drop of 0.1% in March.
The rate has now been below 1% for 18 straight months, well under the European Central Bank's target of near but just under 2%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 0.6% in April, in line with forecasts and unchanged from March.
A separate report showed that the bloc's unemployment rate held steady at 11.3% last month, the lowest level since June 2012. Analysts had expected the jobless rate to fall to 11.2% in March.
The pound slipped lower, pulling away Wednesday's two-month peak of 1.5499, with GBP/USD at 1.5413, down 0.14% for the day.
Elsewhere, the dollar was lower against the yen, with USD/JPY down 0.13% to 118.86 and higher against the Swiss franc, with USD/CHF up 0.14% to 0.9409, off two-month lows of 0.9408 hit earlier in the session.
The KOF Economic Research Agency earlier reported that its index of leading indicators for Switzerland fell to a one-year low of 89.5 this month from 90.9 in March, whose figure was revised from a previously estimated reading of 90.8. Analysts had expected the index to rise to 91.5 in April.
The Australian and New Zealand dollars were weaker, with AUD/USD tumbling 0.95% to 0.7931 and NZD/USD declining 0.98% to 0.7612.
The kiwi came under pressure after the Reserve Bank of New Zealand held its benchmark interest rate at 3.50% but said it could lower borrowing costs in the future.
"The bank expects to keep monetary policy stimulatory and is not currently considering any increase in interest rates," RBNZ Governor Graeme Wheeler said.
He added that "it would be appropriate to lower the official cash rate if demand weakens and wage and price-setting outcomes settle at levels lower than is consistent with the inflation target."
Meanwhile, USD/CAD edged up 0.17% to trade at 1.2040.