Investing.com - The dollar was lower against the euro and the yen on Thursday after a series of disappointing U.S. economic reports underlined expectations that rates are likely to remain on hold until the later part of next year.
EUR/USD edged up 0.10% to 1.2519, extending its pullback from the two year trough of 1.2359 struck on Monday.
Data on Wednesday showed that initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected. Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.
Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.
The data indicated that the recovery in the U.S. is continuing, albeit at a modest pace.
Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.
The euro’s gains were held in check amid heightened expectations that the European Central Bank is moving closer to implementing additional stimulus measures to spur growth and inflation in the euro area.
ECB vice-president Vitor Constancio said Wednesday it could begin quantitative easing as soon as the first quarter of 2015.
The dollar slid to one-week lows against the yen, with USD/JPY down 0.31% to 117.36.
The US dollar index, which tracks the performance of the greenback against a basket of six major currencies, dipped 0.10% to one-week lows of 87.62.