The dollar gained ground against the other major currencies on Thursday after official data showed that the number of people who filed for unemployment assistance in the U.S. fell more-than-expected last week. During European afternoon trade, the dollar rose to session highs against the euro, with EUR/USD down 0.27% to 1.3084. The Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 24,000 to 334,000, compared to expectations for a drop of 13,000 to 345,000. Investors were looking ahead to a second day of testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the session. In the first day of his semi-annual testimony to Congress on Wednesday Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.” Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future. The dollar hit session highs against the yen, with USD/JPY up 0.70% to 100.25. Elsewhere, the dollar edged higher against the pound, with GBP/USD dipping 0.07% to 1.5201. The pound hit session highs earlier after official data showed that U.K. retail sales rose 0.2% in June, in line with expectations and were 2.2% higher compared to the same month last year. The dollar extended gains against the Swiss franc, with USD/CHF climbing 0.48% to 0.9454. The greenback was stronger against its Australian, New Zealand and Canadian counterparts, with AUD/USD dropping 0.78% to 0.9166, NZD/USD down 0.29% to 0.7881 and USD/CAD edging up 0.08% to 1.0413. The Aussie came under pressure after the National Australia Bank said Thursday its business confidence index fell to minus 1 in the second quarter, from a reading of 2 in the previous quarter. Separately, the Conference Board said its leading index was flat in May, after a 0.3% rise the previous month. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.30% to 83.02. The U.S. was to release data on manufacturing activity in Philadelphia later in the trading day.
Posted on: Thu, 18 Jul 2013 14:58:15 +0000
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