Investing.com - The dollar slipped lower against the other major currencies on Thursday after data showed that the U.S. posted stronger-than-expected third quarter growth, but also indicated that domestic demand slowed.
The Commerce Department reported that U.S. gross domestic product grew at an annual rate of 3.5% in the three months to September, beating forecast for 3%.
But consumer spending slowed to 1.8% from 2.5% in the second quarter, and fixed investment spending also declined from the previous quarter, pointing to slackening domestic demand.
Another report showed that the number of Americans filing new claims for jobless benefits rose for a second week last week, but underlying trends still pointed to a recovery in the labor market.
The Labor Department said initial jobless claims rose 3,000 to a seasonally adjusted 287,000.
The data came one day after the Federal Reserve ended its quantitative easing stimulus program, saying it was confident the U.S. economic recovery would continue. The Fed also reassured markets that interest rates would remain on hold for a "considerable time".
EUR/USD was down 0.09% to 1.2600, off the lows of 1.2548 hit immediately following the release of the data.
In the euro zone, preliminary data on Thursday showed that German inflation was unchanged at 0.7% in October from a month earlier, the lowest level since May.
Separately, the number of people unemployed in Germany fell by 22,000 this month, compared to expectations for a gain of 5,000. The country’s unemployment rate was unchanged at 6.7%.
USD/JPY was trading at 108.94, off session highs of 109.36.
The dollar was also little changed against the pound and the Swiss franc, with GBP/USD at 1.6016 and USD/CHF at 0.9555.
NZD/USD was up 0.31% to 0.7825, recovering from the one month lows of 0.7800 hit overnight.
The kiwi fell sharply in the previous session after the Reserve Bank of New Zealand left rates unchanged at 3.5% and said “a period of assessment remains appropriate before considering further policy adjustment."
The bank had said previously that it expected some further monetary tightening would be necessary.
Elsewhere, AUD/USD added 0.20% to trade at 0.8812, while USD/CAD was almost flat at 1.1191.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, was up 0.11% to 86.18, off earlier three-and-a-half week peaks of 86.57.