Dollar fell against a basket of currencies on Thursday as Dow Jones index recovered after initial decline together with rebound in price of oil, encouraged investors to be more risk-aggressive. Earlier in New York morning, the dollar rose against euro although U.S. GDP came out slightly better-than-expected and weekly jobless claims declined. The Commerce Department reported that the U.S. economy contracted 1% in the second quarter, the same as the government’s first estimate released last month, compared to economists’ forecast of a reading of 1.5% drop. The Labor Department said initial claims for state unemployment benefits fell 10,00 to 570,00 in the prior week.

Euro declined to 1.4222 versus the dollar as U.S. shares followed the stock markets across the globe to open lower in Thursday New York morning, prompting investors to buy dollar as a safe-haven asset. However, DJI erased all the intra-day loss (around 80 points) and closed up 37.11 points. The reversal of the Wall Street stocks pushed euro to a three-week high at 1.4407 against the greenback in New York afternoon amid thin trading conditions. Earlier in Europe, German Gfk consumer confidence rose to a 15-month high to 3.7 in September from a revised 3.4 in August, signaling the economic recovery in Germany may gather momentum.

The British pound dropped to a multi-month low against the euro on Thursday as data showed that U.K. business investment fell by 10.4%, the most in 24 years in the second quarter, raising the risk that Q2 GDP figures could be revised down. This sterling-negative news offset a report from Nationwide Building Society showed that British house prices rose 1.6% m/m in August for the fourth month running. Cable hit a fresh six-week low of 1.6153 after the release of U.S. GDP data before rebounding while eur/gbp rallied to 0.8839 in New York afternoon.

Data to be released on Friday include Japan manufacturing PMI, household spending, CPI, unemployment rate, U.K Gfk survey, GDP, eurozone business climate, economic sentiment, Switzerland KOF indicator, U.S. personal income and consumption, PCE index M/M and University of Michigan survey, Canada current account.