Investing.com - The dollar trimmed gains against the other major currencies on Thursday, as the minutes of the Federal Reserve’s latest policy meeting and political tensions in Washington outweighed a string of mostly positive U.S. data.
The greenback hit session highs after the U.S. Department of Labor reported on Thursday that the number of people who filed for unemployment assistance in the U.S. last week fell more than expected.
A separate report showed that manufacturing activity in the Philadelphia region declined less than expected this month.
On a less positive note, the Federal Reserve said that industrial production increased by 0.2% from the previous month, below expectations for a 0.3% rise.
But sentiment on the dollar remained vulnerable after the minutes of the Fed’s July policy meeting released on Wednesday showed that members of the central bank remain divided over the need to raise interest rates further this year, citing low inflation.
Markets were also jittery after U.S. President Donald Trump disbanded two high-profile business advisory councils, sparking concerns over the administration’s ability to implement his economic reforms.
The move came after several chief executives quit in protest over his remarks blaming weekend violence in Virginia not only on white nationalists but also on anti-racism activists who opposed them.
EUR/USD was down 0.31% at 1.1730, after the minutes of the European Central Bank’s latest meeting indicated concerns over the strength of the single currency.
Data earlier showing that euro zone inflation was unchanged in July.
The pound held steady, with GBP/USD at 1.2887, not far from the previous session’s one-month trough of 1.2843, even as the UK Office for National Statistics said retail sales rose slightly more than expected in July.
Elsewhere, USD/JPY slumped 0.29% to 109.87, while USD/CHF fell 0.18% to 0.9641.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.13% at 0.7915 and with NZD/USD slipping 0.19% to 0.7300.
Meanwhile, USD/CAD gained 0.32% to trade at 1.2657, off a more than one-week low of 1.2588 hit overnight, after Statistics Canada said manufacturing sales dropped 1.8% in June, compared to expectations for a decline of 1.0%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.19% at 93.60, after reaching session highs of 93.99.