The dollar was lower against the euro on Thursday with investors prepared to take on more risk, but poor U.S. data capped losses with some investors preferring the safer haven of the U.S. currency. Though the data was evidence of how poorly the U.S. economy is faring, investors believe with a proactive administration, the United States is more likely to recover than other parts of the world. "The weak reports reinforce the view that problems in the U.S. economy are more significant than what had been priced in the market and that's why we're seeing some bids in the dollar," said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. "For now, that should cap risk appetite in the market." The dollar pared losses against the euro after data showed orders for U.S. durable goods fell for a sixth consecutive month to a six-year low in January, adding to concerns about a deepening U.S. recession. A separate report showed the number of U.S. workers continuing to claim jobless benefits notched a fresh record in the second week of February, while new claims for aid were at the highest level since 1982. The euro was last up 0.6 percent at $1.2785. The dollar was up 0.1 percent against the yen at 97.79 yen as investors expressed concern about the health of the Japanese economy.

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