Investing.com - The dollar trimmed gains but remained close to six year highs against the yen and a 14-month peak against a basket of major currencies on Thursday, after the release of mixed U.S. data as the Federal Reserve's fresh guidance on future rate hikes continued to support.
Sentiment on the greenback slightly weakened after the Philadelphia Fed said that its manufacturing index deteriorated to a three-month low of 22.5 this month from August’s reading of 28.0.
A separate report showed that the number of U.S. building permits issued last month dropped by 5.6% to 998,000 units, while U.S. housing starts tumbled by 14.4% last month to hit 956,000 units.
Meanwhile, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 13 decreased by 36,000 to 280,000, the lowest level since mid-July.
USD/JPY remained near highs of 108.96, the strongest level since September 2008 and was last up 0.28% to 108.66.
Wednesday’s Fed statement reiterated that it expects rates to remain on hold for a "considerable time", after its bond purchasing program ends, but it outlined in more detail how it will start to raise short term interest rates when the time comes.
The Fed cut its monthly asset purchase program by another $10 billion, keeping the program on track to finish next month.
EUR/USD gained 0.43% to 1.2915. The euro pared gains earlier, after the European Central Bank said it allotted €82.6 billion to 255 bidders in its new Targeted Long Term Refinancing Operation, or TLTRO. That was well below the €100 to €150 billion predicted by analysts.
The pound pushed higher with GBP/USD climbing 0.79% to 1.6404 as investors awaited the outcome of Scotland’s closely watched independence referendum.
Sterling found support after data on Thursday showed that U.K. retail sales rose 0.4% in August in line with forecasts.
The dollar was lower against the Swiss franc, with USD/CHF sliding 0.72% to 0.9344 off the more than one year highs of 0.9432 struck earlier in the session.
The franc firmed up after the Swiss National Bank refrained from taking steps to weaken the currency at its meeting earlier Thursday, despite concerns over what it called the “deteriorating” economic outlook.
Switzerland’s central bank kept its interest rate target unchanged at zero to 0.25%. It also kept the exchange rate floor unchanged at 1.20 francs per euro and reiterated that it was prepared to defend the level if necessary.
The New Zealand dollar was boosted after data showed that the economy grew 0.7% in the second quarter, beating expectations of 0.6% growth. NZD/USD was up 0.66% to 0.8150.
AUD/USD rose 0.39%, while USD/CAD dropped 0.61% to 1.0936.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.41% to 84.41, still close to highs of 84.90, the strongest level since July 2010.