The U.S. dollar fell to a three-week low against the euro on Thursday after weaker-than-expected U.S. economic data boosted expectations the Federal Reserve will keep its monetary stimulus in place for longer.
The dollar also erased all of its gains versus the yen, which had come under selling pressure after a Reuters report on a proposed revision in the portfolio strategy of Japan's public pension fund.
The U.S. economy grew at a slightly slower pace in the first quarter than initially estimated as government spending dropped, data showed, while initial jobless claims unexpectedly rose last week.
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"Nothing too earth-shattering," said John Doyle, currency strategist at Tempus Inc. in Washington. But the slight reduction in first-quarter growth is "lending a little bit to the scope that the Fed will continue QE throughout the end of the year."