By William L. Watts and Lisa Twaronite, MarketWatch
FRANKFURT (MarketWatch) — The dollar was lower versus most major rivals Thursday, but trimmed a loss versus the euro after lackluster economic data undercut gains tied to Greece’s expected final approval of legislation implementing austerity measures.
The euro EURUSD +0.25% extended gains in Asian trade to press above the $1.45 level versus the dollar, but changed hands in recent action at $1.4483, up from $1.4431 in late North American trading on Wednesday.
The euro was boosted Wednesday after Greek lawmakers voted 155-138 to approve a 78 billion-euro ($112.2 billion) package of additional austerity measures and asset sales. Analysts also expect Greek lawmakers to approve later Thursday the steps needed to implement the measures. Read about final austerity vote.
Approval would clear the way for release of a delayed installment of aid seen as crucial to averting a default by Greece as early as next month.
But the euro’s rally ran out of steam after a round of profit taking and weak retail sales data from Germany and France, said Boris Schlossberg, director of currency research at GFT, in emailed comments.
German retail sales fell 2.8% in May after a 0.6% rise in April. Economists had forecast a 0.5% rise. French consumer spending fell 0.8% in May.
The dollar index DXY -0.24% , which measures the performance of the U.S. unit against a basket of six currencies, slipped to 74.453 from 74.682 late Wednesday.
The British pound GBPUSD -0.36% slipped to $1.6008 from $1.6061 late Wednesday.
The most likely explanation for the pound’s drop versus the dollar is “month-end flow,” said Elsa Lignos, senior currency strategist at RBC Capital Markets, with euro/British pound buying pushing the pound lower versus the dollar.
The euro traded at 90.40 pence versus sterling, a gain of 0.5%.
“As a result of [sterling] weakness and Asia’s scramble to re-enter strategic risk positions, British pound/Australian dollar tumbled to a new low” below A$1.49, she noted. The pair traded at A$1.4936 in recent action a drop of 0.6%.
Against the yen, the dollar USDJPY -0.23% dropped to ¥80.43, from ¥80.89 late Wednesday.
Month-end pressure added to the greenback’s downtrend in Asian trading on Thursday. Japanese exporters often repatriate profits at the end of the month.
However, this summer, Japanese manufacturers will adjust their work schedules to accommodate expected power shortages. Major auto makers will close on Thursdays and Fridays and operate on weekends instead, when power demand is lower.
“This implies that auto producers are unlikely to be active yen-buyers on Thursdays and Fridays, but instead their yen purchases may concentrate on Mondays,” said Tohru Sasaki, head of Japan rates and foreign-exchange research at J. P. Morgan Chase in Tokyo.
Against the yen, the dollar and the euro “could start trading relatively firm on Thursdays and Fridays, but remain suppressed on Mondays during the next three months,” Sasaki said in a research note.
William L. Watts is a reporter for MarketWatch in Frankfurt.
Lisa Twaronite is MarketWatch's Tokyo bureau chief.
