The U.S. dollar erased its early gains against its major rivals on Thursday, as jobless claims in the U.S. rose more-than-expected last week, while consumer price index was flat in October.

The Labor Department report showed that initial jobless claims came in at 291,000 in the week ended November 15th. This is up from expectations for 284,000 claims.

A separate report showed that consumer price index was unchanged in October after inching up by 0.1 percent in September. Economists had expected consumer prices to edge down by 0.1 percent.

Excluding food and energy prices, the core consumer price index rose by 0.2 percent in October after ticking up by 0.1 percent in the previous month. Core prices had been expected to inch up by another 0.1 percent.

The currency got support in previous deals, as the Federal Reserve's minutes of October 28-29 policy meeting showed that it remained on track to lift rates next year, despite concerns about falling inflation.

The Fed members debated about the pledge of low rates for a "considerable time" beyond October. But the minutes gave no clues about whether the language will be scrapped in December.

It also lacked further clarity about when rates could start to rise in 2015.

Having advanced to more than a 7-year high of 118.97 versus the yen at 2:10 am ET, the greenback retreated with pair trading at 117.84. The pair ended Wednesday's deals at 117.95. Further weakness may lead the greenback to a support around the 117.00 zone.

The Japan economy is expected to continue its moderate recovery trend, the Bank of Japan said in its Monthly Report of Recent Economic and Financial Developments.

Driven by the recovery in overseas economies, exports are expected to head for a moderate increase.

The greenback reversed from early 2-day highs of 0.9605 against the franc and 1.2503 against the euro, easing back to 0.9562 and 1.2561, respectively. The greenback is likely to find support around 0.95 against the franc and 1.27 against the euro.

The greenback fell to 1.5712 against the pound, off early high of 1.5631. The next possible support for the greenback lies around the 1.58 region.

U.K. retail sales grew more than expected in October on strong recovery in non-food store sales, data from the Office for National Statistics showed.

Retail sales volume including auto fuel advanced 0.8 percent in October from September. Economists had forecast sales to recover at a slower pace of 0.3 percent after falling 0.4 percent in September

Looking ahead, U.S. leading indicators and existing home sales for October, as well as Eurozone flash consumer sentiment index for November are due shortly.

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