Rancunya U.S. economic data released overnight drove the dollar weakened versus the euro, yen and Swiss francs, but rose against sterling and Australian dollars.

U.S. Commerce Department data showed retail sales rose just 0.5 percent in April, the smallest rate increase in nine months. In contrast, inflation producer prices (PPI) showed an increase that exceeds the expectations of economists in April.

Other data showed the U.S. population for the first time signed up to receive unemployment benefits fell 44,000 last week to 434,000. Despite the decline, the data is not yet described the recovery of the U.S. labor market.

Versus the euro, the dollar rose to the range of 1.4119 before turning direction until closed down 0.3 percent in the range of 1.4238 in late trading session Thursday. Market participants ignored the debt crisis of the Euro Zone in line with remarks flung hawkish tone on inflation by some officials of the European Central Bank (ECB).

Luc Coene, one in the ECB policy makers as well as Deputy Governor of Central Bank of Belgium (NBB) yesterday said it was obvious once the ECB will not only raise interest rates in April and then given the threat of inflation and price pressures increasing. Coene statement is reminded market participants that the ECB still has room to raise interest rates again this year.

Also pressing is the fluctuation of the dollar and commodity prices back up toward the end of the session. Crude oil for June delivery increased 0.8 percent to $ 98.97 per barrel after earlier had dropped to $ 95.25. The spot price of gold meanwhile, closed in the range of $ 1,505.80 per troy ounce, rose about nearly 0.5 percent from the level of the previous Wednesday's close.

Back rise in commodity prices, however, does not help the Australian dollar, known closely related to fluctuations in commodity prices. Australian dollar closed down about 0.4 percent at 1.0665 against the U.S. dollar.

The weakening Australian dollar also fueled by China's decision yesterday to raise the statutory reserves for large banks. The decision represents China's efforts to tighten credit and put the brakes on growth. As Australia's main export destination, China's tightening measures could have a negative impact on economic growth of Australia.

In other trading, the dollar closed down 0.2 percent at 80.98 against the yen. Swiss Franc rose nearly 0.3 percent at 0.8841 per dollar. While the pound weakened 0.4 percent to close at 1.6285 against the dollar range.

Some analysts said the dollar exchange rate movements lately described the market anticipation of the bond purchase program of the Federal Reserve is scheduled to expire next June. Controversial policy known as quantitative easing is one major factor behind the weakening of the dollar since November last year. By policy, the Federal Reserve accused of deliberately weakening the dollar in order to boost U.S. economic growth.

Switch on this day, the attention of market participants seem to be largely focused on U.S. CPI data release schedule later tonight. U.S. consumer price inflation in April is expected to increase 3.1 percent compared to last year, which means the largest increase since October 2008. Increased inflationary pressures could force the Federal Reserve's monetary policy normalize this year, which means positive for the dollar.