The dollar index pared its losses after data showed the US economy grew slightly faster in the second quarter than initially estimated, while US unemployment claims declined slightly last week. All Group of 10 currencies strengthened against the US dollar on Thursday.

The Bloomberg Dollar Spot Index fell 0.2%, a third straight day of declines.

"The data suggests the economy may not be that weak," said Aroop Chatterjee, a strategist at Wells Fargo. "The Q2 GDP was revised up and the claims data suggest that layoffs in the labor market remain moderate."

Investors now await Fed Governor Christopher Waller's speech later Thursday, after New York Fed President John Williams said that next month's policy meeting will be "straightforward." USD/JPY fell 0.2% to 147.08; board member Junko Nakagawa said the central bank will continue to raise interest rates if the economic and inflation outlook is realized.

EUR/USD rose 0.3% to 1.1675; Francois Bayrou said he would negotiate directly with lawmakers next week and warned against new elections as he fights to prevent the French parliament from forcing him to resign.

"Unless there is a major shift in the political landscape, we don't see developments in France as a sustainable driver for the euro for the rest of the year," wrote George Saravelos, global head of FX research at Deutsche Bank.

"The market has already priced in a significant risk premium." "Despite the government's weakness, this year's budget execution has been very positive and in line with expectations for meeting the government's budget deficit target," he said. AUD/USD rose 0.3% to 0.6528. GBP/USD was little changed at 1.3500. (alg)

Source: Bloomberg