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Dollar dips after weak US data

The dollar fell against the euro and other major currencies on Thursday after weak US economic data highlighted expectations the Federal Reserve will maintain its near-zero interest rate policy.

NEW YORK: The dollar fell against the euro and other major currencies on Thursday after weak US economic data highlighted expectations the Federal Reserve will maintain its near-zero interest rate policy.

The latest Labor Department data on unemployment insurance claims was worse than expected. New claims, a sign of the pace of layoffs, rose by 4,000 to 317,000 in the week ending June 7, above the 315,000 estimate.

US retail sales rose just 0.3 per cent in May, the Commerce Department reported, well below analysts' consensus expectation of a 0.7 per cent rise. Excluding autos, sales edged up only 0.1 per cent, when a 0.4 per cent increase was expected.

"If you want an explanation for why the Federal Reserve refuses to put a time frame on tightening, look no further than today's retail sales report," said Kathy Lien of BK Asset Management.

"Lacklustre demand is one of the main reasons why the Federal Reserve has been reluctant to talk about raising rates but aside from this report, jobless claims also increased and import price growth slowed. These disappointing numbers drove the greenback lower."

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