The dollar slipped modestly on Thursday after a softer-than-expected U.S. durable goods report, although the prior month's reading was revised up.
Durable goods orders for February rose 0.3 percent, below economists' forecasts for a rise of 1.0 percent. January's reading was a fall of 1.1 percent, revised from an initially reported decline of 1.3 percent. Initial jobless claims rose to 324,000 for the latest week, above economists' forecasts for 315,000.
"The numbers were very bad for durables, but mitigated by the fact that the prior number was revised up. So the dollar is not reacting as poorly as might initially have been expected," said T.J. Marta, senior currency strategist with RBC Capital Markets in New York.
"The uptrend is clearly in place for jobless claims," indicating a softer-than-expected-U.S. labor market, Marta added.
The euro rose steadily to $1,3005, up from around $1.2977 (EUR=) shortly before the reports, and up 0.1 percent from its levels late on Wednesday.
Against the yen, the dollar traded at 106.19 yen (JPY=) down from around 106.35 yen shortly before the reports, but up 0.2 percent on the global session.
Earlier on Thursday, the dollar cleared a six-week high against the yen, forging higher after U.S. inflation data increased expectations the Federal Reserve may raise interest rates more aggressively.
The yen was also on the back foot after data on Thursday showed big Japanese firms were less upbeat about business conditions and planned to cut back on capital spending, adding to worries about an economy already suffering from weakening exports.
Dealers said the dollar, which was near five-week peaks against the euro, had been buoyed by data on Wednesday showing U.S. consumer prices rising at the fastest year-on-year pace since 2002.
The U.S. central bank lifted the fed funds rate on Tuesday to 2.75 percent, further above the euro zone's comparable rate of 2 percent and virtually zero percent in Japan.
Japan's business survey index for the January-March quarter fell to 0.6 from 2.1 in the previous quarter, reflecting the impact on confidence of higher oil and commodity prices.
Currency trading has started to thin ahead of a holiday on Friday in much of Europe and the United States before Easter. Many see the dollar staying firm until April 1, when U.S. jobs data could shed further light on the U.S. rate outlook. (New York Treasury Desk 1 646 223 6300)