Investing.com - The dollar pushed lower against the other major currencies on Friday, re-approaching a 13-month trough after U.S. growth data come out in line with expectations, while employment cost numbers disappointed.
In its advance report, the U.S. Bureau of Economic Analysis said gross domestic product rose 2.6% in the second quarter, in line with estimates up from a 1.2% growth rate in the three months to March. First quarter GDP was revised from an previously estimated 1.4% increase.
The report also showed that the U.S. employment cost index ticked up 0.5% in the last quarter, disappointing expectations for a 0.6% rise.
The dollar was already broadly weaker since the Federal Reserve said on Wednesday that inflation remains below its 2% target even as near-term risks to the economic outlook appear “roughly balanced.” In the past, the Fed judged that weakness in inflation was transitory.
The central bank’s cautious tone on inflation sparked fresh uncertainty over the possibility of a third rate hike this year.
Sentiment on the greenback also remained vulnerable after Senate Republicans failed to pass their Obamacare repeal bill in a dramatic vote of 49-51 late Thursday night.
In addition, the Senate approved sweeping sanctions against Russia, forcing President Trump to decide whether to accept a tougher line against Moscow or issue a veto amid investigations into ties between his presidential campaign and Russian officials.
EUR/USD climbed 0.51% to 1.1735, not far from Thursday’s two-and-a-half year highs of 1.1777.
The single currency has been largely supported in recent weeks, after European Central Bank President Mario Draghi signaled in June that the central bank could soon start tapering its stimulus program.
Elsewhere, GBP/USD rose 0.20% to 1.3091.
USD/JPY fell 0.20% to 111.05, while USD/CHF added 0.12% to trade at 0.9659.
The Australian dollar turned higher, with AUD/USD up 0.11% at 0.7976, while NZD/USD held steady at 0.7485.
Meanwhile, USD/CAD declined 0.68% to trade at 1.2469 after Statistics Canada reported that the country’s GDP rose 0.6% in May, surpassing expectations for an increase of only 0.2% and up from a growth rate of 0.2% the previous month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.46% at 93.35, moving closer to Thursday’s 13-month low of 93.00.