© Reuters.  Dollar pulls back from session highs, holds steady© Reuters. Dollar pulls back from session highs, holds steady

Investing.com – The dollar trimmed gains against other majors on Thursday, after the release of upbeat U.S. economic reports pushed the greenback briefly higher as markets turned to the next string of U.S. data due on Friday.

The greenback strengthened after the U.S. Commerce Department said consumer price inflation rose more than expected in August.

The strong data added was seen as increasing the chances of an additional rate hike by the Federal Reserve this year.

A separate report showed that initial jobless claims unexpectedly declined to 284,000 last week.

The dollar also remained supported amid hopes a tax reform would soon be implemented by the administration, after U.S. President Donald Trump reached out to both Democrats and Republicans this week.

Trump said on Twitter Wednesday “the biggest Tax Cut & Tax Reform package in the history of our country will soon begin. Move fast Congress!”

Investors were eyeing reports on U.S. retail sales, industrial production and consumer sentiment, due on Friday for further indications on the strength of the economy.

The yen and Swiss franc weresteady, with USD/JPY at 110.56and with USD/CHFat 0.9650.

Earlier Thursday, the Swiss National Bank left the Libor rate unchanged, as expected, and said that “the franc remained overvalued.”

Elsewhere, EUR/USD was little changed at 1.1892, while GBP/USD rallied 122% to a one-year high of 1.3370 after the Bank of England indicated that interest rates could rise faster than expected amid accelerating inflation.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.08% at 0.7979 and with NZD/USD declining 0.39% to 0.7213.

Meanwhile, USD/CAD added 0.12% to trade at 1.2187.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.34 by 10:45 a.m. ET (14:45 GMT), off a one-week high of 92.66 hit earlier in the day.

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