RTTNews - The dollar tumbled versus its major counterparts on Thursday, as positive economic news fueled another bout of risk appetite, supporting resource-linked and higher-yielding currencies. A largely successful 30-year Treasury auction helped to drive the dollar lower.
After stabilizing for the first week of June, the dollar appears to be set for another leg lower, and will likely extend its recently-visited multi-month lows versus a basket of majors.
The bottom fell out on the dollar as stocks held onto their strong gains through mid-day. The buck slipped to a weekly lo of 1.4177 versus the euro, nearly 2 cents clear of a 5-month low last Wednesday.
Meanwhile, the buck dropped sharply versus the sterling, tumbling to within a cent of last week's 6-month low of 1.6662.
Versus the yen, the dollar gave back some of its recent gains, easing to 97.50 from a range just below a monthly high of 98.87
Retail sales showed a notable increase in the month of May, according to a report released by the Commerce Department on Thursday, although the sales growth was due in large part to higher gasoline prices that drove up sales at gas stations.
The report showed that retail sales rose 0.5 percent in May following a revised 0.2 percent decrease in April.
The number of people filing first-time unemployment claims dropped last week to the lowest level in more than four months, reinforcing hope that the labor market has begun to stabilize.
Still, while layoffs appear to be slowing down, there are signs that people who have lost their jobs are having problems finding new ones. The government's unemployment roll once again set a new record high, rising above 6.8 million.
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