Data showed that U.S. consumer spending rose only modestly in February
The dollar edged lower against a currency basket on Thursday giving back some of the previous sessions strong gains after a slate of U.S. economic reports.
The greenback ticked lower after data showing that U.S. consumer spending rose only modestly in February and another report showing that jobless claims fell to a 45-year low last week.
The Commerce Department reported that consumer spending rose 0.2% last month, lagging behind income growth, which rose 0.4% last month.
Meanwhile, the Federal Reserve’s preferred measure of inflation climbed 1.8% year-over-year, the most in nearly a year.
Another report showed that U.S. jobless claims fell to 215,000 last week, a more-than 45-year low.
The data did little to alter expectations that the Federal Reserve will stick to its plan for gradual interest rate hikes this year. The Fed hiked rates for the first time this year last week and stuck to its projection for three rate hikes this year.
The dollar rallied on Wednesday on faster U.S. economic growth and hopes for a diplomatic breakthrough with North Korea.
The euro edged higher against the dollar, with EURUSD inching up 0.11% to 1.2323, pulling away from the one-week low of 1.2295 hit earlier.
The U.S dollar remained lower against the yen, with USDJPY down 0.33% to 106.49, after ending Wednesday’s session with gains of 1.4%, the largest increase since September 11.
Sterling was a touch lower against the dollar, with GBPUSD dipping 0.12% to 1.4058.
The Canadian dollar held slight gains against its U.S. counterpart despite weak domestic economic growth data, with USDCAD down 0.12% at 1.2907.
Canadian economic growth contracted 0.1% in January according to official figures released on Thursday, missing expectations for growth of 0.1%.