WASHINGTON (dpa-AFX) - The U.S. dollar gained in strength against most of its major rivals on Thursday, as traders reacted to recent comments by the Federal Reserve about outlook for interest rates, and looked ahead to the crucial monthly jobs data, due on Friday.
The dollar index rose to a high of 97.85, gaining about 0.22%.
Against the British Pound Sterling, the dollar was trading at 1.3033, recovering from a low of 1.3082.
The Bank of England today held the key interest rate and asset purchases unchanged and raised the growth outlook, while reiterating that policymakers would always aim to achieve the 2% inflation target.
According to survey data from IHS Markit, UK construction output rose for the first time since the start of the year in April, driven by a strong increase in residential work, but overall activity remained subdued amid weaker demand and optimism.
The euro was down by about 0.18% at $1.1176, weighed down by data that showed eurozone's manufacturing sector contracted for a third successive month in April.
The survey data from IHS Markit showed that Eurozone's manufacturing sector shrunk for a third successive month in April, albeit at a slower pace.
The Manufacturing purchasing managers' index, or PMI, rose to 47.9 in April from 47.5 in March. The flash reading was 47.8 in April.
'The survey's output index is indicative of factory production falling at a quarterly rate of approximately 1%, setting the scene for the goods producing sector to act as a major drag on the economy in the second quarter,' Chris Williamson, Chief Business Economist at IHS Markit, said.
The dollar was up against the Japanese yen as well, with a unit of greenback fetching 111.50 yen, as against 111.38 yen overnight.
The dollar was up 0.14% against the Aussie at 0.6998, and 0.18% against the loonie at 1.3470.
Against Swiss franc, the greenback gained about 0.14% after data showed Swiss retail sales declined at the steepest pace in six months in March
A dollar fetched 9.5759 Swedish Krona, up 0.34% from 9.5434.
In U.S. economic news today, a report from the Commerce Department said factory orders rose 1.9% in the month, after falling by a revised 0.3% in February. Economists had expected orders to surge up by 1.5%, compared to the 0.5% drop originally reported for the previous month.
Durable goods orders rose by 2.6% in March, while orders for non-durable goods showed a 1.1% increase in the month. In February, durable goods orders fell 1.3%, while non-durable goods orders were up 0.8%.
A report from the Labor Department showed a much bigger than expected 3.6% increase in labor productivity in the first quarter. Productivity climbed by a revised 1.3% in the fourth quarter of the previous financial year.
Economists had expected production to jump by 2.2% compared to the 1.9% increase that had been reported for the previous quarter.
Another report from the Labor Department showed first-time claims for U.S. unemployment benefits came in at 230,000, unchanged from the previous week's unrevised level of 230,000. Economists had expected jobless claims to dip to 215,000.
On Friday, the Labor Department is scheduled to release its more closely watched report on the employment situation in the month of April.
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