The U.S. dollar weakened against its major opponents in the Asian session on Thursday, as strong U.S. inflation data lifted sentiment and an impasse in negotiations over a coronavirus rescue package stoked concerns about an economic recovery.

U.S. consumer prices rose 0.6 percent in July, better than expectation of 0.3 percent. The rate also matched the increase seen in June.

Traders reacted to U.S. lawmakers' failure to agree on a new rescue package to aid recovery.

The two sides remained "miles apart" with respect to the size of the stimulus package for the beleaguered economy.

Fed officials warned that the U.S. recovery will be gradual and slow until the pandemic is contained.

Investors await the Labor Department's weekly jobless claims report and import and export prices for July for more direction.

The greenback dropped to 6-day lows of 1.1838 against the euro and 0.9089 against the franc, after rising to 1.1778 and 0.9122, respectively in early deals. The currency is poised to find support around 1.20 against the euro and 0.885 against the franc.

The greenback touched a 2-day low of 1.3083 against the pound, down from a high of 1.3026 seen at 5:00 pm ET. On the downside, 1.35 is seen as the next likely support for the greenback.

The greenback reversed from an early high of 106.91 against the yen, with the pair trading at 106.57. The greenback may test support around the 102.5 region, if it falls again.

The U.S. currency dipped to near a 6-month low of 1.3227 against the loonie at the beginning of today's session and was steady since then. The pair had finished Wednesday's deals at 1.3245.

In contrast, the greenback rebounded to 0.6561 against the kiwi and 0.7157 against the aussie, from an early low of 0.6599 and a 2-day low of 0.7188, respectively. The greenback is seen finding resistance around 0.62 against the kiwi and 0.69 against the aussie.

Looking ahead, U.S. weekly jobless claims for the week ended August 8 and import and export prices for July are due in the New York session.

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