© Reuters. FILE PHOTO: A US dollar bill (bottom) is seen alongside Australian $10 (L) and $20 bills in this pictogram taken in Washington, DC, Oct. 14, 2010. REUTERS/Jason Reid/File Photo
By Gertrude Chavez-Dreyfus
NEW YORK (Reuters) – The dollar rose to a seven-week high on Thursday after another round of strong economic data further reduced bets on easing by the Federal Reserve and amid market optimism about a U.S. debt ceiling agreement to avert a potential default.
Thursday’s reports showed US Initial Jobless Claims came in lower than expected at 242,000 in the latest week, compared to expectations of 254,000.
Another piece of data indicated a smaller-than-expected decline in the business index to -10.4 from the Philadelphia Fed. Markets were expecting a contraction of -19.8.
It touched a new seven-week high of 103.38, and was last up 0.5% at 103.34 after economic figures.
Against the yen, the dollar rose to a five-month high of 138.39 after the data and was last up 0.5% at 138.35.
Traders are pricing in about a 20% chance that the Federal Reserve will raise interest rates at its June meeting. About a month ago, the markets were pricing about 20% chance of reduction.
Traders rate the Fed’s December meeting rate standing at 4.525%, indicating about 55 basis points of easing by the end of the year, down about 5 basis points from the previous day.
The focus was also on the debt ceiling talks.
President Joe Biden and US Republican Congressman Kevin McCarthy stressed on Wednesday their determination to strike a deal soon to raise the government’s $31.4 trillion debt ceiling, having agreed the day before to negotiate directly after a months-long standoff.
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Coin bid prices at 9:00 am (1300 GMT)
Description RIC Last US Close Pct Change YTD Pct High Bid Low Bid
previous change
a class
Dollar Index 103.3300 102.8900 +0.44% -0.155% +103.3800 +102.7900
EUR/USD 1.0790 USD 1.0839 -0.44% + 0.70% + 1.0848 USD + 1.0786 USD
USD/JPY 138.2950 137.7050 +0.42% +5.48% +138.3900 +137.2850
EUR/JPY 149.21 149.22 -0.01% +6.36% +149.3100 +148.7800
USD/CHF 0.9019 0.8986 +0.38% -2.45% +0.9022 +0.8982
GBP/USD $1.2421 $1.2487 -0.52% + 2.72% + $1.2493 + $1.2415
USD/CAD 1.3484 1.3456 +0.20% -0.49% +1.3485 +1.3457
AUD/USD 0.6620 USD 0.6659 -0.56% -2.85% + 0.6668 USD + 0.6621 USD
EUR/CHF 0.9731 0.9739 -0.08% -1.64% +0.9745 +0.9726
EUR/GBP 0.8684 0.8680 +0.05% -1.82% +0.8701 +0.8679
0.6221 USD 0.6248 -0.40% -1.99% + 0.6269 USD + 0.6221 USD
dollars / dollars
Dollar / Norway 10.8930 10.7630 +1.28% +11.08% +10.9000 +10.8030
Euro / Norway 11.7461 11.6749 +0.61% +11.93% +11.7590 +11.6680
Dollar / Sweden 10.5467 10.4458 +0.51% +1.33% +10.5493 +10.4405
Euro / Sweden 11.3808 11.3227 +0.51% +2.03% +11.3812 +11.3210
