Investing.com - The dollar remained closed to seven-week lows on Thursday after data showing a larger than expected fall in jobless claims as dovish Federal Reserve meeting minutes continued to weigh.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 94.51, near the day’s lows of 94.31, the weakest since June 24.
The Labor Department reported that the number of Americans filing for initial jobless benefits last week fell by 4,000 to 262,000, remaining in territory consistent with a solid labor market.
Economists had expected a decline of 1,000.
Another report showed that manufacturing activity in the Philadelphia-region recovered slightly this month.
The dollar remained on the defensive after Wednesday’s minutes of the Fed’s July showed that policymakers are split over whether to raise interest rates again soon.
The U.S. central bank left rates unchanged at its meeting last month, but opened the door to rate hikes later this year.
But the minutes said that some officials believe a slowdown in the future pace of hiring would argue against a near-term hike.
The minutes came a day after New York Fed head William Dudley said a rate increase as early as September is “possible.”
The U.S. central bank raised interest rates for the first time in almost a decade in December.
Higher interest rates typically boost the dollar by making it more attractive to yield seeking investors.
The euro was near seven-week peaks, with EUR/USD up 0.19% at 1.1311.
The dollar edged higher against the yen, with USD/JPY rising 0.16% to 100.43.
The pound strengthened, with GBP/USD advancing 0.82% to 1.3145.
Sterling was boosted after data showing that U.K retail sales rose more strongly than expected in July, as consumers shrugged off the Brexit vote.