Investing.com - The dollar edged higher against most major currencies on Thursday after European Central Bank President Mario Draghi hinted that monetary authorities would be okay with implementing fresh stimulus measures in June.
In U.S. trading on Thursday, EUR/USD was down 0.39% at 1.3856.
The European Central Bank earlier left interest rates unchanged at 0.25%, though the euro dropped after Draghi said the ECB governing council is comfortable with acting at its next meeting in June, after the bank has published fresh forecasts for inflation and growth.
Draghi attributed weak inflation rates to food and energy prices, but added that the strong euro and weak domestic demand are also suppressing inflation rates.
He reiterated that the ECB does not have a target for the euro exchange rate but stressed that the bank would closely monitor exchange-rate developments.
Draghi reiterated the bank’s forward guidance, stressing that interest rates will remain at their present or even lower levels for a considerable time.
The ECB chief said the latest data shows that the European economy is recovering, in line with the bank''s forecasts, but also pointed to a prolonged period of low inflation, followed by only a gradual rise in prices.
Meanwhile in the U.S., the Department of Labor reported that number of individuals filing for unemployment assistance last week fell by 26,000 to 319,000 from the previous week’s revised total of 345,000.
Analysts had expected jobless claims to fall by 20,000 to 325,000.
The dollar was down against the yen, with USD/JPY down 0.42% at 101.48 and up against the Swiss franc, with USD/CHF up 0.33% at 0.8792.
The greenback was up against the pound, with GBP/USD down 0.06% at 1.6943.
The Bank of England''s Monetary Policy Committee voted to keep interest rates on hold at their current record low of 0.5%. The bank also made no change in its quantitative easing program, which remains at £375 billion, though the pair largely ignored the widely-anticipated move
The dollar was mixed against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.71% at 1.0822, AUD/USD up 0.49% at 0.9374 and NZD/USD down 0.24% at 0.8642.
Australia reported earlier that the number of employed people in Australia rose by 14,200 in April, beating expectations for a 6,800 increase, while the unemployment rate remained steady at 5.8%.
Elsewhere, China''s trade surplus widened to $18.45 billion in April from a surplus of $7.7 billion in March, outpacing estimates for a $13.9 billion surplus, which boosted the aussie.
Chinese exports climbed 0.9% from a year earlier, beating expectations for a 1.7% decline and following a 6.6% drop in March. Imports rose 0.8%, compared to forecasts for a 2.3% decline and after plunging 11.3% in the previous month.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.17% at 79.41.