(Reuters) - The dollar weakened against most major currencies on Thursday as investors grew increasingly skeptical the Federal Reserve will raise U.S. interest rates again next month, in light of slower growth and tamer inflation.

The dollar suffered losses for the second day in a row, even after data showed a surprisingly robust pick-up in June orders for big-ticket items and a fall in weekly jobless claims, which would suggest the U.S. economy was in better shape than many had thought.

But given Wednesday’s Beige Book report that showed the Fed anticipates slower growth and moderating price pressures ahead, traders see less need for tighter monetary policy.

“Certainly the market is debating the outlook for the Fed and the more neutral tone we’ve heard suggests the rate tightening cycle is over and I think that is what is driving a lot of the weakness we’re seeing in the dollar,” said Sophia Drossos, G10 currency strategist at Morgan Stanley.

In early afternoon New York trade, the dollar was down 0.5 percent on the day against the yen at 115.71 yen, and down 0.2 percent against the Swiss franc at 1.2375 francs.

Sterling was up 0.3 percent on the day at $1.8595, having hit a 7-week high earlier in the day, while the euro was flat at $1.2710, having earlier shot up as high as $1.2772.

The euro briefly dipped to a session low of $1.2705 after data earlier in the day showed orders for durable goods, or items meant to last three years or more, beat forecasts in June, while weekly initial jobless claims fell more than expected.

“You’d expect a surge of dollar strength on the back of this because it is strong data for the U.S. economy, quite frankly. Jobless claims below 300,000 is significant — we haven’t been there for a while — and the headline durable goods number was strong,” said Greg Anderson, senior currency strategist at ABN AMRO in Chicago.

“But the fact that the dollar only got a little out of the ‘knee-jerk’ (move) suggests the dollar is offered,” he said.

Data that showed a fall in new home sales in June added to the pressure on the dollar and financial futures trimmed back expectations for an August rate hike even further. For details, on new home sales.

The chances of a rate rise to 5.50 percent at the Fed’s next policy meeting on Aug. 8, as reflected by the fed funds futures market, have now dropped to about 43 percent from about 60 percent two days ago, removing a vital pillar of support for the U.S. currency.

But some analysts said this tapering in expectations could be overdone.

“The market probably has gotten itself a little too optimistic about the Fed ending the tightening process,” said Robert Sinche, head of global foreign exchange strategy at Bank of America.

“We are at critical juncture in terms of expectations, and we think continued higher inflation expectations will force the Fed to move twice more,” he said.