The pound and Aussie weakened on Thursday, while the yen climbed higher as investors sought safe havens amid choppy trading.
Sterling was pushed lower after the Bank of England (BoE) made the decision to hold interest rates at a record low of 0.25%. Despite its decision, the central bank still hinted at additional interest rate cuts if the economy fails to pick up.
The BoE also made the decision to maintain its quantitative easing program at £435 billion.
According to the meeting minutes, both of these decisions were unanimous. The minutes also showed that policymakers were more upbeat about the outlook for the U.K.’s economy.
The central bank did note, however, that it may reduce rates as soon as November unless the economy showed signs of picking up.
The pound was trading at 1.3192 against the dollar during morning trade. The euro advanced against the pound, climbing 0.22% to 0.8520.
Other data out of the U.K. early Thursday morning showed that retail sales were slightly lower in August, down 0.2%. Analysts were expecting a 0.4% decline. Year-over-year, retail sales were up 6.2%.
Meanwhile, the Aussie was weaker against other currencies after the release of a downbeat jobs report. The report showed an unexpected decline of 3,900 jobs in the month of August. Analysts were expecting an increase of 15,000 jobs.
The unemployment rate, however, fell to 5.6%, beating expectations of a 5.7% rate.
The yen gained support on Thursday, as investors flocked to safe havens amid shaky stock markets. The U.S. dollar was trading at 102.14 against the yen, 0.28% lower.
The Australian dollar was at 0.7462 against its U.S. counterpart. The New Zealand dollar was down 0.11% against the greenback, trading at 0.7274.
Earlier in the day, New Zealand announced that its second-quarter GDP was up 0.9% compared to the previous quarter, missing expectations of a 1.1% increase. Year-on-year, the GDP grew at a pace of 3.6%, missing the 3.7% pace expected.