The dollar edged higher against the euro and the yen on Thursday after upbeat U.S. economic data, while the New Zealand dollar hovered near a 2-1/2-year high after economic data and hints that the country's central bank could raise interest rates.
The Commerce Department said U.S. fourth-quarter gross domestic product rose at a 2.6 percent annual rate, up from the 2.4 percent pace reported last month. The Labor Department, meanwhile, said initial claims for U.S. state unemployment benefits dropped to the lowest since November.
The data put the U.S. Federal Reserve "squarely on pace" to continue cutting its monthly asset purchases and raise short-term interest rates in the first half of 2015, said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
Investors had bought the dollar last week after Fed Chair Janet Yellen suggested the possibility of raising interest rates early next year, or about six months after its current bond-buying program ends.