Investing.com - The dollar trimmed losses against other major currencies on Wednesday, helped by the release of positive U.S. economic reports, although the greenback remained within close distance of a three-week trough amid ongoing U.S. political jitters.
The U.S. Commerce Department said consumer prices rose 0.1% in October, in line with forecasts.
A separate report showed that U.S. retail sales increased by 0.2% last month, just above expectations for a more modest gain of 0.1%.
On a less positive note however, the New York Federal Reserve reported that its Empire State manufacturing index fell 11 points to 91.4 in November, compared to analysts forecast for a reading of 26.00.
The greenback has been under pressure recently amid uncertainty over the fate of a major U.S. tax overhaul.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 93.67 by 10:50 a.m. ET (14:50 GMT), off a three-week low of 93.31 hit earlier in the day.
EUR/USD was up 0.13% at 1.1812, after climbing to a three-week high of 1.1860 earlier in the session, while GBP/USD eased up 0.09% to 1.3178.
The euro remained broadly supported after solid euro zone growth data on Tuesday offered further evidence that the region’s economic recovery remains on track, supporting the European Central Bank's move to begin reducing its bond-buying program.
Last month the ECB said it would keep its bond buying program in place late into next year but reduce the size of its monthly purchases, a policy shift signaling it is on track to eventually raising interest rates.
In the UK, data showed that wage growth remained sluggish, while the unemployment rate remained steady at a 42-year low in September.
Elsewhere, USD/JPY dropped 0.38% to 113.02, while USD/CHF slipped 0.18% to 0.9877.
Data earlier showed that Japan's economy grew faster than expected in the third quarter thanks to strong exports, posting the longest period of uninterrupted growth in more than a decade.
The Australian dollar was weaker, with AUD/USD down 0.59% at 0.7586, while NZD/USD was almost unchanged at 0.6879.
Meanwhile, USD/CAD gained 0.38% to trade at 1.2781.