Investing.com - The dollar traded largely higher against most major currencies on Thursday after data revealed the U.S. economy is growing, the labor market improving and pending home sales on the rise, though escalating tensions in Ukraine watered down the greenback's advance.
In U.S. trading on Thursday, EUR/USD was down 0.07% at 1.3183.
A top Ukrainian military official was reported as saying earlier that a "full-scale invasion" was taking place in the country, while separate reports that up to 1,000 Russian troops were in Ukraine to assist pro-Russian rebels watered down demand for the dollar.
The U.N., meanwhile, was holding an emergency meeting to address the crisis, which sent investors sidestepping the dollar on fears military conflicts will dampen the global recovery and drag on the U.S. economy as a consequence.
The dollar firmed earlier and held onto gains stemming from upbeat U.S. data before geopolitical concerns sparked profit taking.
The U.S. gross domestic product grew at a revised annualized rate of 4.2% in the second quarter of this year, according to the Commerce Department, up from a preliminary estimate of 4.0% and better than market forecasts for a downward revision to 3.9%.
The numbers firmed the dollar earlier by cementing expectations that the Federal Reserve will close its bond-buying program around October and hike benchmark interest rates some time in 2015.
Elsewhere, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending Aug. 22 declined by 1,000 to 298,000 from the previous week’s revised total of 299,000.
Analysts were expecting the figure to rise by 1,000 instead of contract by that amount, which gave the greenback support.
A separate report showed that U.S. pending home sales increased by 3.3% last month, beating expectations for a 0.5% rise. June's figure was revised to a 1.3% drop from a previously estimated decline of 1.1%.
In Europe, data revealed that the number of unemployed people in Germany rose by 2,000 last month, confounding expectations for a decline of 5,000. The change in the number of unemployed people for June was revised to a 11,000 drop from a previously estimated 12,000 decline.
The euro had found support earlier, as expectations for fresh stimulus measures by the European Central Bank slightly eased after German Finance Minister Wolfgang Schauble said on Wednesday that ECB President Mario Draghi's recent comments on the matter have been "overinterpreted."
The dollar was down against the yen, with USD/JPY down 0.20% at 103.67, and down against the Swiss franc, with USD/CHF down 0.01% at 0.9148.
In Switzerland, official data showed that the number of employed people rose to 4,200 million in the last quarter, from 4,192 million in the three months to April. Analysts had expected the number of employed people to rise to 4,210 million in the second quarter.
The greenback was down against the pound, with GBP/USD up 0.08% at 1.6588.
The Confederation of British Industry earlier reported that realized sales rose to a six-month high of 37 this month, from a reading of 21 in July, compared to expectations for a rise to 27.
The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.09% at 1.0854, AUD/USD up 0.20% at 0.9354 and NZD/USD up 0.10% at 0.8382.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.03% at 82.50.
On Friday, expect the greenback to move on U.S. personal spending and income reports, a Chicago-area factory gauge and consumer sentiment figures.