The dollar held steady on Thursday as investors waited for data on U.S. retail sales and jobless claims, while the yen climbed despite the Japanese economy falling into a recession.

The dollar index, which measures the currency against six peers, was very slightly lower at 104.64, just below a three-month high of 104.97 touched on Wednesday.

Retail sales data, due at 1330 GMT (8.30 a.m. ET), will provide more clues about the direction of the U.S. economy after inflation came in hotter than expected on Tuesday.

Tuesday's price figures caused investors to rein in their expectations for Fed rate cuts, triggering a jump in bond yields and the dollar.

The euro was little changed at $1.0731 while the pound slipped 0.13% to $1.2549 after data showed the UK economy edged into a recession in 2023.

The yen rose on Thursday, with the dollar down 0.38% at 150.03 yen despite Japan's unexpectedly weak gross domestic product figures, which saw the country lose its title as the world's third-largest economy.

It held under the three-month low of 150.88 touched on Tuesday, buoyed somewhat after Japan's top currency officials warned against "rapid" yen moves the previous day.

Commonwealth Bank of Australia currency strategist Carol Kong saw the technical recession as having little impact on the yen, with the upcoming spring wage negotiations more important to the Bank of Japan's (BOJ) policy outlook.

Australia's dollar was little changed at $0.6493. The Swiss franc was slightly stronger at 0.8833 francs to the dollar, after falling to a nine-week low earlier this week as inflation slowed.

Source: Reuters