Investing.com - The dollar dropped to one-week lows against a basket of other major currencies on Thursday, as market sentiment improved after Greek lawmakers passed a second set of crucial reforms, paving the way for the country's third bailout.
EUR/USD climbed 0.60% to one-week highs of 1.0994 after a majority of Greek lawmakers voted in favor of a second set of reforms late Wednesday, signalling that negotiations on an €86 billion European Union bailout can begin. The country is aiming for a deal by the middle of next month.
The new measures include changes to Greek banking and an overhaul of the judiciary system.
Greece had passed an initial set of austerity measures imposed by its creditors last week. These were a mix of economic reforms and budget cuts demanded before bailout talks could continue.
Earlier Thursday, data showed that Spain's unemployment rate ticked down to 22.37% in the second quarter from 23.78% in the three months to March. Analysts had expected the unemployment rate to rise to 23.10% in the last quarter.
The pound was steady, with GBP/USD at 1.5609 after data showed that U.K. retail sales declined by 0.2% last month, disappointing forecasts for a gain of 0.3%.
Year-on-year, retail sales rose 4.0% in June, below expectations for a 4.9% gain, after rising at a rate of 4.7% in May.
Core retail sales, which exclude automobile sales, fell by 0.2% last month, compared to forecasts for a 0.3% rise, after gaining 0.4% in May.
But sterling remained supported after Bank of England Governor Mark Carney said last week that the decision to raise interest rates from record lows will come into sharper focus around the end of 2015.
Elsewhere, the dollar was lower against the yen and the Swiss franc, with USD/JPY down 0.11% at 123.83 and with USD/CHF declining 0.48% to 0.9554.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.43% at 0.7407 and with NZD/USD rallying 1.57% to 0.6680.
The National Australia Bank earlier reported that its quarterly business confidence index rose to 4 in the second quarter from zero in the three months to March.
Meanwhile, USD/CAD dropped 0.41% to 1.2981, pulling away from Wednesday's six-year peak of 1.3055.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.49% at 97.14, the lowest level since July 15.