Dollar struggles in London

The dollar struggled to pull itself up from multi-month lows against the euro and Swiss franc on Thursday as investors remained cautious after a raft of weaker-than-expected US economic data.
Dealers said the US currency was still being hampered by Friday's disappointing US payrolls data and a report on Tuesday showing a slower pace of expansion in the US service sector.
The numbers bolstered the case that the US central bank - which raised interest rates last week for the first time in four years - may not be as aggressive with future rate increases as previously thought.
"A lot of good news had been priced into the dollar and some doubts have emerged, particularly after the payrolls, about the pace of future US rate hikes," said Lee Ferridge, head of global currency strategy at Rabobank.
The prospect of US interest rates staying lower for longer made US deposits and fixed income investments less appealing, dimming demand for dollars.
As of 1132 GMT, the euro was trading at $1.2356, down slightly from late New York levels but still within half a cent of three-month highs scaled on Wednesday.
The dollar stood at 1.2292 Swiss francs, having fallen below 1.2250 francs on Wednesday for the first time in over four months.
The Bank of England held interest rates at 4.5 percent on Thursday, in line with most economists' expectations, after back-to-back rate rises in May and June.
Evidence has grown in the past month that Britain's economy is growing briskly but tentative signs have emerged that the housing market is finally starting to lose steam.
After gaining more than three cents against the dollar over the past week, sterling was a touch easier on the day at $1.8512 . The British pound climbed to a three-month high above $1.8575 on Wednesday.
The US currency also fared better against the Australian, New Zealand and Canadian dollars as investors took profit on high-yielding currencies which have racked up huge gains against the greenback in the past week.
The Australian dollar, which rose to two-month highs above US$0.7240 on Wednesday, was down 0.6 percent at US$0.7186.
The Aussie took a knock after data showed Australian employment unexpectedly fell in June, pushing the jobless rate up to 5.6 percent. The dollar fetched 108.95 yen, up 0.3 percent from Wednesday's closing levels but still within recent ranges.