The U.S. dollar extended its early decline against its key counterparts on Thursday, as rising U.S. weekly jobless claims for last week casted a shadow of doubt in recent recovery in the U.S. labour market.
First-time claims for U.S. unemployment benefits rose by more than expected in the week ended August 9th, according to a report released by the Labor Department, with claims rising to their highest level in six weeks.
The report said initial jobless claims climbed to 311,000, an increase of 21,000 from the previous week’s revised level of 290,000.
Economists had been expecting jobless claims to edge up to 295,000 from the 289,000 originally reported for the previous week.
With the bigger than expected increase, jobless claims reached their highest level since hitting 316,000 in the week ended June 28th.
The U.S. import prices showed a modest decrease in the month of July, separate data showed.
The import prices in the U.S. edged down by 0.2 percent in July after inching up by 0.1 percent in June. Economists had expected import prices to dip by 0.3 percent.
Meanwhile, the report said export prices came in unchanged in July following a 0.4 percent drop in the previous month. Export prices had been expected to slip 0.2 percent
The greenback dropped to 0.9034 against the Swiss franc, a 6-day low, off an early high of 0.9085. The pair was quoted at 0.9072 at Wednesday’s New York session close. The greenback-franc pair may possibly find support around the 0.897 zone.
Pulling away from an early 9-day high of 102.65 against the yen, the greenback declined to 102.30. The next likely support for the greenback-yen pair is seen around the 101.5 level. The pair finished Wednesday’s trading at 102.40.
Fitch Ratings said Japan’s full-year growth forecast of 1.6 percent remain in place with exports set to pick up in the second half.
The economy contracted 6.8 percent in the second quarter, which was the worst quarterly figure since 2011. The marked contraction was largely expected and it was due to timing effects on consumption from the implementation of sales tax increase on April 1, Fitch noted.
The greenback came off from an early high of 1.3348 against the euro, falling to 1.3403. Continuation of bearish trend may take the greenback to a support around the 1.35 mark. At yesterday’s close, the pair was worth 1.3363.
Eurozone inflation slowed as initially estimated in July to the lowest since late 2009, final figures from Eurostat showed.
Inflation eased to 0.4 percent in July, in line with flash estimate, from 0.5 percent in June.
After spiking up to a 4-month high of 1.6656 against the pound earlier, the greenback reversed direction and fell to 1.6696. Further weakness may take the greenback to a support around the 1.68 zone.
The average asking price for a house in the United Kingdom moderated in July, the latest report from the Royal Institution of Chartered Surveyors revealed – showing a score of 49.
That’s down from 52 in June, and represents a five-month low.
The greenback declined to a 1-week low of 0.9326 against the Australian dollar, after having climbed to 0.9287 in previous deals. Continuation of the greenback’s downtrend may test support around the 0.94 region.
The greenback drifted down to 0.8514 against the NZ dollar, its weakest since August 5. This set a 0.7 percent decline from yesterday’s close of 0.8454. The next key downside target for the greenback lies around the 0.86 zone.
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