Investing.com - The dollar remained at two-week lows against the other major currencies on Thursday despite robust U.S. jobless claims data, a day after the Federal Reserve left rates on hold and hinted at one rate increase this year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.45% at 95.03, the weakest level since September 12.
The Labor Department reported Thursday that the number of Americans filing for unemployment benefits fell to a two-month low last week.
Initial jobless claims fell by 8,000 to 252,000, the lowest level since mid-July. Claims for the prior week were unrevised.
The data pointed to ongoing strength in the labor market that could prompt the Fed to hike rates before the years end.
On Wednesday, the U.S. central bank left interest rates on hold but said the case for a rate hike “has strengthened” citing improvements in the labor market.
The euro was stronger, with EUR/USD advancing 0.51% to 1.1246.
The dollar gained ground against the yen, with USD/JPY rising 0.25% to 100.56.
The yen had rallied on Wednesday after the Bank of Japan rebooted its monetary policy framework, amid skepticism over whether it will be enough to spur inflation.
The BoJ refrained from cutting interest rates further into negative territory or expanding its asset purchase program at its monetary policy meeting, instead switching to targeting interest rates as a way to reach its inflation target.
Elsewhere, sterling moved higher, with GBP/USD up 0.3% to 1.3071.