Forex - Dollar dips on China output data, hopes for Greek bailout

The dollar softened against the world's major global currencies on Thursday after Chinese manufacturing data came in strong, while renewing hopes that Greece will tap fresh bailout funds soon also enticed investors out of the safety of the greenback.

In Asian trading on Thursday, EUR/USD was up 0.12% at 1.2844

The China HSBC Flash Manufacturing Purchasing Managers Index hit 50.4 for November, a 13-month high and up from a final October reading of 49.5.

The news sent the dollar dipping as investors sold the unit to invest in stocks and higher-yielding asset classes.

Renewed hopes that Greece will soon tap bailout funds sent the U.S. currency falling as well.

In Brussels, Eurozone finance ministers and representatives from the International Monetary Fund failed to agree to disburse aid to Greece earlier this week.

European governments support giving Greece a two-year extension to trim the country's debt burdens to 120% of GDP, though the IMF did not agree.

The IMF, meanwhile, opposed the two-year extension and says policymakers should stick with plans for Greece to bring debt burdens down to 120% by 2020 — and not 2022 — but has said European countries should take a hit on Greek loans, which has run into opposition in Europe.

Still, the euro gained on hopes that all sides will strike a deal at a follow-up meeting on Monday and free EUR31.5 billion earmarked for the crisis-ridden country.

Later Thursday, European Union leaders will hold the first day of a two-day summit in Brussels to discuss the debt crisis and plans for greater fiscal and monetary integration across the region.

Hopes for a productive gathering bolstered the single currency as well.

Meanwhile in the U.S., the Conference Board reported earlier that its Leading Economic Index rose in October, gaining 0.2% in wake of rising 0.5% in September, whose figure was revised down from 0.6%.

The index grew in line with analysts' expectations for October.

Elsewhere, the Thomson Reuters/University of Michigan final consumer sentiment index for November disappointed.

In a report, the Thomson Reuters/University of Michigan report said that consumer sentiment fell to a seasonally adjusted 82.7, up from 82.6 in October but short of analysts' calls for a 84.5 reading.

A separate report showed that the U.S. manufacturing purchasing managers' index improved to 52.4 in November from a reading of 51.00 the previous month. Analysts had expected the index to rise to 51.20 this month.

Also in the U.S. earlier, the U.S. Department of Labor reported that the number of individuals filing for initial jobless claims last week declined to a seasonally adjusted 410,000, in line with expectations.

Jobless claims for the preceding week were revised up to 451,000 from a previously reported 439,000, though analysts pointed out Superstorm Sandy continued to disrupt the number and flow of Americans filing for benefits.

Meanwhile, the greenback was down against the pound, with GBP/USD trading up 0.09% at 1.5966.

The dollar was down against the yen, with USD/JPY trading down 0.05% at 82.49 and down against the Swiss franc, with USD/CHF trading down 0.11% at 0.9378.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD trading down 0.02% at 0.9962, AUD/USD up 0.19% at 1.0389 and NZD/USD trading up 0.20% at 0.8163.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.14% at 80.86.

U.S. markets will be closed on Thursday for the Thanksgiving holidays.