TOKYO, July 4 Reuters The dollar was on the back foot on Thursday after U.S. economic data continued to point to slowing growth, offering limited relief to the yen, which remained pinned near a 38year low that had the market on alert for government intervention.

The euro and sterling both consolidated off threeweek highs against the greenback, as voters hit the polls in the UK later in the day and investors awaited a second round of voting in France on Sunday.

The dollar index, which measures the greenback against a basket of peer currencies, was close to flat at 105.32 after briefly weakening to its lowest since June 13 at 105.04 on Wednesday.

Softerthanexpected U.S. economic data on Wednesday, including a weak services report and ADP employment report, depicted a slowing economy, following an increase in initial applications for unemployment benefits last week.

Slowly but surely, what we39;re starting to see is a bit of a turn in the U.S. economic data flow, said Rodrigo Catril, senior currency strategist at National Australia Bank NAB.

Minutes of the Fed39;s June meeting acknowledged the U.S. economy appeared to be slowing and price pressures were diminishing.

The string of weaker economic data had markets pricing in about a 68 chance of a U.S. rate cut in September versus 56 a week ago, according to the CME FedWatch tool.

The dollar39;s drop helped a battered yen edge 0.12 higher versus the greenback to 161.53.

Traders also appeared to be adjusting positions…