Investing.com - The dollar slipped lower against other major currencies on Friday, as lower expectations for an upcoming U.S. rate hike continued to dampen demand for the greenback, while the European Central Bank’s inaction supported the single currency.
EUR/USD rose 0.20% to 1.1282.
The euro gained ground after the ECB raised its 2016 growth forecast to 1.7% from 1.6%, but slightly lowered its 2017 forecast from 1.7% to 1.6% on Thursday.
At the conclusion of the bank’s policy meeting, ECB President Mario Draghi said current monetary policy is effective and the changes to the banks growth forecast are not so substantial as to warrant a decision to act.
The comments came after the central bank left its benchmark interest rate at a record-low 0.0%, in line with market expectations.
Draghi added that interest rates would remain at present or lower levels for an “extended time” so the recovery would not be derailed.
USD/JPY slid 0.34% to trade at 102.13.
Sentiment on the greenback remained vulnerable after downbeat U.S. employment data published last Friday crushed expectations for an upcoming rate hike by the Federal Reserve.
Investors shrugged off data on Thursday showing that U.S. initial jobless claims in the week ending September 3 decreased by 4,000 to a six-week low of 259,000 from the previous week’s total of 263,000. Analysts expected jobless claims to rise by 2,000 to 265,000 last week.
GBP/USD edged up 0.19% to 1.3321.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 94.89.