* ECB vows to keep rates lower for longer * Euro in choppy action after ECB decision * U.S. jobless claims weaker than expected * Higher-risk currencies firm * Dollar and yen off recent highs (Recasts, adds new comment, updates prices) By Gertrude Chavez-Dreyfuss NEW YORK, July 22 (Reuters) - The dollar drifted higher against a basket of currencies in choppy trading on Thursday while the euro fell as risk appetite dimmed once again with stocks volatile and investors buying U.S. Treasuries. Earlier in the session, the greenback slid in the wake of weaker-than-expected U.S. jobless claims data that raised concerns about the world"s largest economy"s recovery from the pandemic. The euro, on the other hand, was firmer earlier in the day after the European Central Bank met expectations by pledging to keep interest rates at record lows for even longer. ECB President Christine Lagarde, in her media briefing, did not say anything to change the market"s cautious outlook on the euro zone. She said a fresh wave of the coronavirus pandemic could pose a risk to the region"s recovery, although she did offer a more balanced economic outlook. "The euro/dollar"s 30-point pop higher during Christine Lagarde"s press conference seemed appropriate in light of some of the dovish narratives coming into the meeting, but the market has now given up this move and is trading back to where it started this morning," said Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto. The ECB"s dovish pivot - which follows its recently released strategy review - at a time when many peers are mulling exiting pandemic-era stimulus is expected to keep the single European currency under pressure. In early afternoon trading, the euro was down 0.2% against the dollar at $1.1763. On Wednesday, it hit a 3-1/2-month low of $1.1752. The dollar index, meanwhile, rose 0.1% to 92.87, as the impact of the softer-than-expected U.S. jobless claims data faded. Data showed initial claims for state unemployment benefits increased 51,000 to a seasonally-adjusted 419,000 for the week ended July 17, the highest level since mid-May. Economists polled by Reuters had forecast 350,000 applications for the latest week. "These numbers provide more evidence of deceleration," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto. "In continuing to print above expectations, weekly claims are suggesting a loss of momentum in the U.S. labor market – something that could push Federal Reserve tightening plans further into the future and put further pressure on bond yields," he added. Elsewhere, growth-focused currencies such as the Australian dollar gained as a global risk sell-off abated further. The Aussie dollar was last up 0.2% at US$0.7372. The gains in higher-risk assets come after robust company earnings lifted Wall Street and European bourses, allowing investors to look past concerns that the Delta Covid-19 variant would dampen the economic recovery. Sterling firmed 0.2% to $1.3768, recovering from 5-1/2-month troughs, while in cryptocurrencies, bitcoin rose after Wednesday"s 7.9% jump - the biggest since mid-June. It was last up 0.9% at $32,448. The dollar slipped 0.1% against the yen, another safe haven, to 110.14 yen. ======================================================== Currency bid prices at 1:10PM (1710 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 92.8810 92.8030 +0.09% 3.223% +92.9260 +92.5040 Euro/Dollar $1.1762 $1.1789 -0.23% -3.73% +$1.1831 +$1.1758 Dollar/Yen 110.1400 110.2800 -0.13% +6.60% +110.3550 +110.0200 Euro/Yen 129.54 130.09 -0.42% +2.06% +130.2900 +129.4900 Dollar/Swiss 0.9198 0.9177 +0.19% +3.92% +0.9200 +0.9156 Sterling/Dollar $1.3766 $1.3713 +0.40% +0.78% +$1.3787 +$1.3691 Dollar/Canadian 1.2568 1.2561 +0.07% -1.29% +1.2594 +1.2530 Aussie/Dollar $0.7373 $0.7360 +0.20% -4.14% +$0.7397 +$0.7343 Euro/Swiss 1.0819 1.0821 -0.02% +0.11% +1.0840 +1.0814 Euro/Sterling 0.8544 0.8600 -0.65% -4.40% +0.8609 +0.8544 NZ $0.6967 $0.6972 -0.09% -2.99% +$0.6985 +$0.6947 Dollar/Dollar Dollar/Norway 8.8695 8.8785 +0.08% +3.48% +8.8915 +8.7790 Euro/Norway 10.4330 10.4700 -0.35% -0.32% +10.5235 +10.3500 Dollar/Sweden 8.6809 8.6876 -0.26% +5.91% +8.7004 +8.6452 Euro/Sweden 10.2123 10.2386 -0.26% +1.35% +10.2538 +10.2130 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Sujata Rao and Tommy Wilkes in London; Editing by Bernadette Baum and Mark Heinrich) Our Standards: The Thomson Reuters Trust Principles.