DOLLAR HOLDS GAINS IN RISK-OFF TRADE

 The dollar held gains against the other major currencies on Thursday, as a batch of economic reports from China, the euro zone and the U.S. continued to support demand for the safe-haven greenback.

Dollar remains higher vs. rivals

During U.S. morning trade,EUR/USD declined 0.86% to 1.3640.

In a report, the Institute for Supply Management said its index of purchasing managers dipped to 57.0 last month from a reading of 57.3 in November, still holding near the fastest rate since April 2011. 

The greenback strengthened earlier, after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 28 declined by 2,000 to a seasonally adjusted 339,000. 

Analysts had expected U.S. jobless claims to fall by 7,000 to 334,000 last week from the previous week’s revised total of 341,000. 

In the euro zone, Markit research group said its final manufacturing purchasing managers' index for the bloc remained unchanged at 52.7 last month, in line with expectations. 

A separate report showed that Germany's manufacturing PMI rose to a 30-month high of 54.3 in December, from a reading of 54.2 the previous month. Analysts had expected the index to remain unchanged last month. 

France's manufacturing PMI fell to a seven-month low of 47.0 in December, from 47.1 in November, compared to expectations for the index to remain unchanged.

The pound was lower against the dollar, with GBP/USD down 0.82% to 1.6425. 

Markit also said the U.K. manufacturing PMI fell to 57.3 last month from a reading of 58.1 in November. Analysts had expected the manufacturing PMI to ease down to 58.0 in December. 

Elsewhere, the greenback was lower against the yen, with USD/JPYshedding 0.32% to 104.95 but higher against the Swiss franc, withUSD/CHF jumping 1.09% to 0.9021. 

The greenback was steady against the Australian, New Zealand and Canadian dollars, with AUD/USD up 0.02% to 0.8927, NZD/USD easing 0.03% to 0.8223 and USD/CAD down 0.03% to 1.0618.

The export-related currencies came under pressure earlier, after a report earlier showed that China’s final HSBC PMI inched down to 50.5 in December from a reading of 50.8 in November.

The data was published one day after a government report showed that China’s manufacturing PMI fell to a four-month low of 51.0 last month from 51.4 in November and worse than forecasts for a decline to 51.2. 

The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.65% to 80.81.