US Dollar Dips From One-Year High Due To Proxy And Consolidation
- US weekly jobless claims shake dollar luster
- U.S. GDP data confirms Q2 growth
- Dollar / yen on track for best monthly performance since February
- Euro at its lowest since July 2020 against the dollar
NEW YORK / LONDON, Sept. 30 (Reuters) – The dollar slipped from a one-year high on Thursday in choppy trading, slightly under pressure from an increase in weekly jobless claims in the United States, and as investors consolidated their gains after rising sharply the last few sessions.
Overall, the greenback has been supported by soaring US Treasury yields, as the Federal Reserve expects its monetary stimulus to wane from November even as global growth slows.
Thursday’s economic data, however, eroded some of the dollar’s strength.
The first jobless claims in the United States rose for the third week in a row to 362,000 for the period ending Sept. 25, data showed. Economists polled by Reuters predicted 335,000 jobless applicants for the past week. Read more
That said, another report confirmed that US economic growth accelerated in the second quarter, at a rate of 6.7%, thanks to government financial assistance in the event of a pandemic, which boosted consumer spending. . Read more
“The mixed data held back the dollar’s rise to new highs,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.
“Second quarter growth was stronger, but jobless claims added to the mixed picture for the labor market. The third consecutive weekly increase in jobless claims suggests any improvement in hiring in September may be more subdued.” , he added.
The dollar index, which measures the currency against a basket of six rivals, hit 94.504, its highest since September 28 last year. It was last slightly lower to 94.287.
“The dollar’s surge which took it to new highs for the year yesterday against the euro, yen and pound, has eased today and a tone of consolidation is evident,” Marc wrote. Chandler, chief market strategist at Bannockburn Forex, in a research note.
“His pullback so far today has been superficial, suggesting it may not be over.”
The dollar’s recent gains came despite a political stalemate in Washington over the US debt ceiling that threatens to shut down much of government. Read more
Yields on the benchmark 10-year Treasury bond stood at 1.541%, remaining near a three-month high reached on Tuesday at 1.5670%.
The dollar hit 112.07 yen, the highest since February 2020. It was down 0.2% to 111.815 yen, but on track for its best monthly performance since February.
The euro was down to $ 1.1585, having previously hit $ 1.1568, its lowest since July 2020.
“We continue to see the downside risk of the (euro) spot in the middle of this new low of the year,” said Kristoffer Kjær Lomholt, chief analyst at Danske Bank.
“A cyclical slowdown, higher real rates in 0-5 years, as a means to weigh on global inflation, central bank divergence and valuations are generally all inputs that suggest a weaker EUR / USD.”
The risk-sensitive Australian dollar strengthened 0.7% to US $ 0.7221, after falling 0.9% overnight as iron ore prices rallied ahead of the holiday of Golden Week in Australia’s main business destination, China.
A slight improvement in overall risk sentiment after days of gloom was seen in cryptocurrency markets, as bitcoin rose 3.8% to $ 43,142 and ether rebounded 4.5% at $ 2,979.
Both coins are down between 20% and 27% from their September peaks.
Price of currency offers at 10:00 a.m. (2:00 p.m. GMT)
Reporting by Gertrude Chavez-Dreyfuss in New York and Ritvik Carvalho in London; Additional reporting by Kevin Buckland in Tokyo; Editing by William Maclean, Hugh Lawson and Jonathan Oatis
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