© Reuters. FILE PHOTO: The British pound and the US dollar are seen in this illustration on June 22, 2017. Photograph: Thomas White/Reuters
Written by Karen Britel
NEW YORK (Reuters) – The dollar rose against a basket of currencies on Thursday after data showed that the number of Americans filing new applications for unemployment benefits fell unexpectedly last week, boosting expectations that the Federal Reserve may continue to raise interest rates if the economy remains strong.
The Labor Department said initial claims for state unemployment benefits fell by 9,000 to a seasonally adjusted number of 228,000 for the week ending July 15. Economists polled by Reuters had expected 242,000 claims in the last week.
The odds of the US central bank continuing to raise interest rates after a widely expected increase of 25 basis points next week rose after the data. Federal Reserve fund futures traders are pricing in an additional 34 basis points of tightening, up from expectations of another 32 basis points of increases on Wednesday.
“The market has been looking for signs of layoffs in the US, and they simply don’t materialize,” said Adam Patton, senior currency analyst at ForexLive in Toronto. “Today’s Initial Jobless Claims number confirms once again that the United States has a very strong job market and that the Federal Reserve still has more work to do.”
Investors will focus on Federal Reserve Chairman Jerome Powell’s comments after the US central bank’s interest rate decision on Wednesday in search of any fresh clues as to whether interest rates are likely to be raised again in September.
The dollar fell after last week’s consumer and producer inflation data indicated that price pressures may be closer to a return to the 2% inflation target set by the Fed.
It rose 0.21% against the basket of currencies, to 100.44. The euro fell 0.15 percent to $1.1184.
The British pound extended its decline after data on Wednesday showed that Britain’s inflation rate was at its slowest rate in more than a year at 7.9%, which is likely to relieve some pressure on the Bank of England to continue sharply raising interest rates.
The British currency fell 0.48% to $1.2875, down from $1.3144 last Thursday, its highest level since April 2022.
The dollar rose 0.09% against the Japanese yen, to 139.83.
The dollar rose after employment beat expectations for a second consecutive month in June, leaving the door open for more rate hikes from the Reserve Bank of Australia. It was last up 0.66% at $0.6817.
The dollar lost 0.84% against the outside, to 7.1717.
China left lending standards unchanged on Thursday, and its central bank added that it had raised the cross-border financing ratio that dictates the maximum amount a company can borrow as a proportion of its net assets, allowing domestic companies to tap foreign markets for funds.
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Coin offer prices at 10:00 am (1400 GMT)
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
previous change
a class
Dollar Index 100.4400 100.2500 +0.21% -2.947% +100.5500 +100.0100
EUR/USD 1.1184 USD 1.1202 -0.15% + 4.39% + 1.1229 USD + 1.1172 USD
USD/JPY 139.8250 139.7150 +0.09% +6.66% +139.9650 +139.1100
EUR/JPY 156.38 156.44 -0.04% +11.46% +156.6100 +156.1500
USD/CHF 0.8616 0.8586 +0.35% -6.82% +0.8633 +0.8562
GBP/USD 1.2875 USD 1.2938 -0.48% + 6.47% + 1.2964 USD + 1.2855 USD
USD/CAD 1.3153 1.3164 -0.08% -2.92% +1.3168 +1.3120
AUD/USD 0.6817 USD 0.6771 +0.66% -0.01% + 0.6847 USD + 0.6766 USD
EUR/CHF 0.9634 0.9615 +0.20% -2.63% +0.9645 +0.9604
EUR/GBP 0.8683 0.8655 +0.32% -1.81% +0.8698 +0.8656
0.6257 NZD 0.6264 -0.14% -1.49% + 0.6308 NZD + 0.6246 USD
dollars / dollars
Dollar / Norway 9.9790 10.0310 -0.53% +1.67% +10.0460 +9.9240
Euro / Norway 11.1610 11.2484 -0.78% +6.36% +11.2584 +11.1280
USD/Sweden 10.2743 10.2632 +0.03% -1.28% +10.2979 +10.2187
Euro / Sweden 11.4942 11.4902 +0.03% +3.04% +11.5314 +11.4627
