The US dollar rose vs. most major currencies as jobless benefit claims rose more than expected to 637,000 in the last weak. The number of new claims was pushed up by auto plant shutdowns related to Chrysler's bankruptcy. The number of people staying on the benefit rolls jumped to a record high of 6.56 million in the week ended May 2. The Labor Department said the Producer Price Index climbed 0.3% in April.
The euro fell against the dollar as poor economic data pushed investors into safe-haven currencies. Spain 's economy suffered its worst contraction in half a century in the first quarter as the gross domestic product shrank -1.8% quarter-on-quarter and -2.9% year-on-year. Analysts are forecasting a -2% contraction in the Euro-Zone economy in the first quarter, which is released on Friday. Spain 's retail sales also fell by -8% in March, which showed the extent of the contraction in the Euro-Zone.
Sterling weakened against the dollar after the Bank of England gave a cautious assessment of the UK economy's recovery prospects. BOE Governor Mervyn King stated that though there were signs the pace of decline was starting to ease, the recovery would be slow and highly uncertain.
The Japanese yen strengthened vs. most major currencies as a fall in global equities helped bring investors into the safe-haven currency.
The Canadian dollar fell against the dollar as crude oil prices, a key Canadian export, continued to fall.
The Australian dollar and New Zealand dollar both fell against the dollar as investors sold the high-yielding currencies over concerns about the recovery in the global economy.
The Mexican peso continued to weaken against the dollar on dampened hopes of a quick global economic recovery.
10-Year Treasury Note Yield : 3.120%
Dow Jones Industrial Average : 8,278.52 -6.37