NEW YORK: The dollar gained on Thursday as US data showed a mixed picture of the American economy, while the euro was weighed down by cautious comments by a leading European Central Bank hawk.

US consumer spending accelerated in July with an 0.8% increase, but slowing inflation strengthened expectations that the Federal Reserve would keep interest rates unchanged next month. The personal consumption expenditures (PCE) price index rose 0.2% last month, matching June’s gain.

It comes after a string of data this week, including a drop in job openings to the lowest level in nearly 2-1/2 years in July, raised concerns that the economy is slowing.

“The dollar is fairing better as today’s data suggests America’s economic glass remains half full,” said Joe Manimbo, senior market analyst at Convera in Washington.

However, “the dollar does remain in a hole for the week, and that’s because weaker numbers earlier this week cast doubt on the Fed hiking again.”

The dollar index was last up 0.54% at 103.66. It has fallen from 104.44 last Friday, the highest since June 1.

Fed funds futures traders see an 89% probability that the US central bank will leave rates unchanged at its September meeting, and are pricing in a 44% likelihood of a hike in November, according to the CME Group’s FedWatch Tool.