The US dollar fell vs. most major currencies as investors bought higher-yielding assets due to increased appetite. The number of people filing claims for jobless benefits last week stayed below levels seen in June as the number of applications rose 25,000 to 584,000. More than 600,000 claims were filed every week last month.
The euro rose against the dollar with increased optimism that the global economy is recovering. Confidence in the Eurozone improved as an index of executive and consumer sentiment rose to 76 in July, the highest since November, which beat forecasts of a rise to 75.0. The business climate index improved from a revised -2.92 in June to -2.71 in July, showing that economic conditions are starting to become less bad. The unemployment rate in Germany , Europe 's largest economy, stayed little changed at 8.3% in July.
The British pound rose against the dollar as a report showed British house prices climbed in July for a third month, which suggests improvements in the economy. Mortgage lender Nationwide Building Society said that home prices rose 1.3% in July from the previous month, beating forecasts of a 0.2% increase.
The Japanese yen weakened against the dollar as increased risk appetite pushed investors out of the safe-haven currency. Domestic industrial production increased 2.4% in June after a 5.7% gain the previous month.
The Canadian dollar rose against the dollar for the first time in three days as global equities and commodities advanced. Crude oil prices rebounded from a sharp drop yesterday as investor risk appetite increased. Data showed that the industrial product price index rose 0.7% in June.
The Australian strengthened against the dollar as home-building approvals rose the most in four years. The number of permits granted to build or renovate houses and apartments increased 9.3% in June, from a revised -11.0% the previous month. The increase also beat forecasts of an 8% increase, though building approvals were still down 14.3% from the previous year.
The New Zealand dollar fell against the dollar after Reserve Bank of New Zealand kept interest rates at a record low 2.5%. The RBNZ Governor said that the “forecast recovery is based on further easing in financial conditions,” which suggests that the central bank may cut borrowing costs further to prevent a stronger currency from hurting the nation's recovery.
10-Year Treasury Note Yield : 3.6996%
Dow Jones Industrial Average : 9225.80 +155.08