Investing.com - The dollar edged lower against against the other major currencies on Thursday, as sentiment on the greenback remained vulnerable ahead of the Federal Reserve's upcoming policy statement due later in the day.
The dollar was higher against the yen, with USD/JPY up 0.24% at 120.84.
Investors were eyeing the conclusion of the Fed policy setting meeting later in the day amid uncertainty over whether the Fed would hike short term interest rates for the first time in almost a decade.
An increase in interest rates would boost the greenback by making it more attractive to yield-seeking investors.
The dollar had weakened after data on Wednesday showing that U.S. inflation unexpectedly fell for the first time in seven months in August tempered expectations for a rate hike.
The dollar was lower against the euro, with EUR/USD up 0.19% to 1.1313.
Elsewhere, the dollar was fractionally lower against the pound, with GBP/USD up 0.09% at 1.5507 and lower against the Swiss franc, with USD/CHF shedding 0.23% at 0.9691.
The Office for National Statistics earlier reported that U.K. retail sales increased by 0.2% last month, in line with forecasts.
Retail sales were up 3.7% from the same month a year earlier, slightly short of expectations for a 3.8% increase.
Core retail sales, which exclude automobile sales, rose 0.1% last month and were up 3.5% on a year-over-year basis.
Also Thursday, the Swiss National Bank left its benchmark interest rate unchanged at -0.75%, in line with expectations.
The Australian and New Zealand dollars were weaker, with AUD/USD down 0.33% to 0.7176 and with NZD/USD sliding 0.25% to 0.6351.
Statistics New Zealand reported on Thursday that the country's gross domestic product rose 0.4% in the second quarter, confounding expectations for a 0.5% increase.
On a yearly basis, New Zealand's GDP increased by 2.4% in the second quarter, below expectations for a 2.5% gain.
Meanwhile, USD/CAD edged up 0.16% to trade at 1.3193.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 95.36.