The dollar hits new highs
Although during the day, the dollar reached a new high, the currency closed the session lower against other currencies, pressured by an increase in applications for state unemployment benefits in the United States and while investors consolidated gains after the rises of the last sessions.
The dollar index, which measures the currency against a basket of six rivals, reached 94,504 units, its highest level since September 28 of last year, and then traded down 0.2% to 94,199.
In general, the dollar has been supported by the rebound in Treasury bond returns amid expectations that the Federal Reserve will begin to reduce its monetary stimulus from November. However, the economic data on Thursday affected part of the strength of the greenback.
Initial claims for unemployment benefits in the United States rose for the third consecutive week to 362,000 in the week to Sept. 25, according to official data. Economists polled by Reuters had forecast 335,000 requests for the past week.
But another report confirmed that US economic growth accelerated in the second quarter, at a rate of 6.7%, thanks to the government’s pandemic aid money, which boosted consumer spending.
“The disparate data has slowed the dollar’s rise to new highs,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
“Second-quarter growth proved stronger, but jobless claims added to the mixed job market outlook. The third-followed weekly rise in jobless claims suggests that any hiring improvement in September could be more moderate.” added.
With information from Reuters.