The dollar slipped broadly on Thursday after unimpressive U.S. economic data failed to boost expectations for another Federal Reserve rate increase this year, while month-end investment flows and caution ahead of Friday's U.S. jobs report also weighed.
The Commerce Department said consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3 percent last month after a 0.2 percent gain in June. Economists had forecast consumer spending rising 0.4 percent in July.
In the 12 months through July, the personal consumption expenditures (PCE) price index excluding food and energy or "core PCE" price index increased 1.4 percent, the smallest gain since December 2015.
"With today's still-weak inflation numbers and with the impact that (Tropical Storm) Harvey can have on just a more noisy data set for (the Fed) to try to decipher, I think it's more likely that they push the next rate hike into the new year," said James Brilliant, co-chief investment officer at Austin, Texas-based Century Management Investment Advisors.