Dollar Loses Ground Against Peers

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The U.S. dollar weakened against most of its peers on Thursday as the rally in stock markets dimmed the appetite for the safe-haven currency.

The dollar had gained in strength yesterday after the Fed’s minutes from its latest policy meeting said several members felt the need for some discussions on tapering its asset purchase programs during the upcoming sessions.

Data released by the Labor Department showed unemployment claims in the U.S. fell to 444,000 last week (the lowest since the week ended March 14, when it had dropped to 256,000), down from a revised 478,000 claims in the previous week. Economists had expected unemployment claims to drop to around 450,000 in the week ending May 15th.

The Labor Department’s data also showed that the number of continuing claims unexpectedly rose by 111,000 last week to 3.75 million, hitting a seven-week high.

The four-week moving average of US jobless claims, which removes week-to-week volatility, dropped to a fourteen-month low of 504,750 in the week, down from a revised 535,250 in the previous week.

The Philadelphia Fed Manufacturing Index fell to 31.5 in May from 50.2 in April which was the strongest reading in nearly 50 years. Figures also came below forecasts of 43. The index of business conditions fell sharply to 52.7 in April, from 66.6.

The dollar index drifted down to 89.76, losing nearly 0.5%.

Against the Euro, the dollar weakened to $1.2227, giving up more than 0.4%.

The Pound Sterling firmed up to $1.4187, gaining more than 0.5%.

Against the Yen, the dollar lost ground, fetching 108.79 yen a dollar, compared with 109.22 yen a dollar Wednesday evening.

The dollar lost ground against the Aussie, sliding to 0.7774 a unit of the Australian currency, from 0.7728.

The Swiss franc firmed up to 0.8976, gaining more than 0.7% from 0.9042, while the Loonie gained 0.62% against the dollar, strengthening to C$1.2058.

The material has been provided by InstaForex Company – www.instaforex.com

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