Investing.com - The euro extended losses against the dollar on Thursday after data showed that U.S. economic growth accelerated in the second quarter, underlining expectations for a rate hike later this year.
EUR/USD was last down 0.61% to one-week lows of 1.0914 from 1.0968 earlier.
The Commerce Department said U.S. gross domestic product expanded at an annual rate of 2.3% in the three months to June. First quarter growth was revised up to 0.6% from a previously reported contraction of 0.2%.
Although economists had forecast growth of 2.6% the report still indicated that the economy is on a solid footing.
The report came a day after the Federal Reserve indicated that interest rates could rise in the coming months, possibly as early as September.
The Fed noted that the economy and the labor market had continued to strengthen, reinforcing expectations for an initial rate hike at its September meeting.
Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.
Another report showed that the number of U.S. workers filing claims for initial jobless claims rose to 267,000 last week from the previous week’s total of 255,000, which was the lowest level since November 1973.
The dollar also gained ground against the yen, with USD/JPY up 0.39% to 124.40.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.53% to one-week highs of 97.74.