Dollar Gains Against Other Major Currencies


The U.S. Dollar turned stronger against most of its peers on Thursday after the Federal Reserve Chairman Jerome Powell commented that he does not consider the sell-off in U.S. bonds as a “disorderly” move.

Continued optimism about a quick economic recovery aided dollar’s surge. The 10-year U.S. Treasury yield moved past 1.5% on Powell’s comment that inflation could see a jump.

Speaking during The Wall Street Journal Jobs Summit, Powell acknowledged the reopening of the economy could “create some upward pressure on prices.”

However, Powell suggested the increase in the annual rate of inflation would largely reflect comparisons to the low prices seen a year ago.

The Fed chief said he expects the increase in inflation to be “transitory” and stressed there is “a lot of ground to cover” before price growth reaches a sustainable level above the Fed’s 2% target.

Data released by the Labor Department this morning showed initial jobless claims inched up to 745,000 in the week ended February 27th, an increase of 9,000 from the previous week’s revised level of 736,000. Economists had expected jobless claims to rise to 750,000 from the 730,000 originally reported for the previous week.

A separate report released by the Commerce Department showed a bigger than expected increase in new orders for U.S. manufactured goods in the month of January.

The dollar index rose to 91.67, hitting a three-month high, and was last seen at 91.60, up more than 0.7% from previous close.

Against the Euro, the dollar firmed up to $1.1972, gaining 0.75% from $1.2063.

The Pound Sterling weakened by nearly 0.4%, fetching $1.3896 per unit, compared to Wednesday’s close of $1.3949.

The Yen was at 107.95 a dollar, about 0.85% down from previous close of 107.02 a dollar.

Against the Aussie, the dollar was stronger at 0.7724, gaining more than 0.6% from 0.7775.

The Swiss Franc weakened to 0.9293, losing more than 1% from 0.9199, while the Loonie was down at 1.2670, compared to 1.2655 on Wednesday.

The material has been provided by InstaForex Company –


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