On Friday the dollar was broadly lower against its peers, impacted by the previous session's disappointing U.S. data. Meanwhile, investors were eyeing additional U.S. economic
reports due later in the day.
Investors expect the U.S. to release data on consumer prices and consumer sentiment later in the day.
On Thursday the U.S. Department of Labor
reported that the number of individuals filing for initial
jobless benefits increased more than expected to 294,000 last week. Downbeat numbers sent the dollar lower.
The U.S. Commerce Department said in a separate report that the number of building permits issued in March declined by 5.7% last month to 1.039 million units.
The downbeat data spurred further speculation that the Federal Reserve could delay hiking interest rates until late 2015, instead of tightening midyear.
EUR/USD gained 0.59% to 1.0825.
Earlier, revised data indicated that euro zone consumer price inflation rose 1.1% last month, in line with expectations and up from a preliminary estimate of 0.6%. Euro zone inflation declined by 0.3% in February. The rate grew closer to the European Central Bank's target of near but just below 2%.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose 1.4% in February, up from an initial estimate of 0.6%.
The pound was also higher, with GBP/USD up 0.46% to 1.5002, even as the Office for National Statistics said that the U.K. claimant count dropped 20,700 last month, compared to expectations for a 29,500 decline. February's figure was changed to a 29,100 fall from a previously estimated 31,000 drop.
Another report showed that the U.K. unemployment rate ticked down to 5.6% in February from 5.7% the previous month, in line with expectations.
Meanwhile, it was also revealed that that average U.K. earnings rose 1.7% in February, below expectations for an increase of 1.8%, after an upwardly revised 1.9% gain in January.
The dollar was lower against the yen and the Swiss franc, with USD/JPY lower 0.18% to 118.82 and with USD/CHF shedding 0.28% to 0.9535.
The Australian, New Zealand and Canadian dollars were broadly stronger, with AUD/USD adding 0.17% to 0.7816 and NZD/USD rising 0.43% to 0.7704, while USD/CAD edged 0.11% lower to trade at 1.2176.
