NEW YORK: The dollar retreated on Thursday from a three-month high hit late in the previous session, mainly due to strength in the euro after the European Central Bank set a new inflation target and as concerns grew over the spread of Covid variants. Softness in the dollar continued after data showed the number of Americans filing new claims for unemployment benefits rose unexpectedly last week, an indication that the labour market recovery from the Covid-19 pandemic continues to be choppy.
The dollar index, which measures the greenback against six rivals, fell 0.5% to 92.25 from Wednesday, when it touched 92.844 for the first time since April 5.
The euro climbed across the board as investors dumped risky positions in currency markets in a broad-based unwinding by some hedge funds.
The euro climbed 0.64% against both the dollar and the British pound, to $1.1866 and 86.11 pence, respectively. The Aussie fell 0.67% to $0.7433, touching its weakest level since mid-December, while the Kiwi declined 0.99% to $0.69475.
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