Forexpros – The dollar was largely lower against most major currencies on Thursday, weakening against the euro, which regained some strength after an earlier hammering.
Lower-than-expected inflation figures out of China sparked some demand for other currencies amid choppy trade on hopes China will ramp up its economy, which will benefit suppliers of raw materials needed to power the Asian giant.
The dollar on Thursday was down against the euro, with EUR/USD climbing 0.14% to hit 1.2725.
The euro plunged against the dollar in earlier U.S. and European sessions on reports that a Fitch analyst said the European Central Bank should do more to help contain and extinguish the debt crisis, adding the bank should consider ramping up sovereign bond purchases from banks, which ECB officials have avoided thus far.
However, the euro regained its strength in Asian trading.
Meanwhile, the dollar was stronger against the pound, with Cable falling 0.03% to hit 1.5326.
The greenback was down 0.02% against the yen, with USD/JPY was trading at 76.84, and down against the Swiss franc, with USD/CHF losing 0.13% at 0.9528.
The greenback was down against its cousin in Canada but up against Australia and New Zealand, with USD/CAD dropping 0.16% at 1.0178, AUD/USD down 0.03% to 1.0307 and NZD/USD down 0.01% at 0.7968.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.13% at 81.47.
Later Thursday, markets will turn their attention back to Europe to see if the European Central Bank makes moves on monetary policy.
The U.K. is to release an official report on manufacturing production, a key indicator of economic health, while the National Institute of Economic and Social Research is to publish its monthly estimate of GDP.
Later in the day, the Bank of England will announce its latest moves to its benchmark interest rate.
In the eurozone, industrial production figures will hit the wire.
Canada is to produce official data on new house price inflation, a leading indicator of demand in the housing sector.
Later Thursday, the U.S. is to release official data on retail sales and initial jobless claims.
The U.S. will also unveil government data on business inventories.
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