RTTNews - The dollar weakened Thursday morning in New York as risk appetite lifted high-yielding currencies such as the sterling and euro.
Stocks rallied on Wednesday and were poised to rise further this morning after the Federal Reserve said that that economic activity is leveling out.
Its been a volatile week for the dollar, which strengthened early on, only to give back most of its gains in the previous session.
The dollar eased to 1.4270 versus the euro, moving further away from a two-week high of 1.4085. With the loss, the dollar inched back toward a 2009 low from earlier this month.
A similar pattern was seen versus the sterling, with the dollar dropping to 1.6620. A week ago, the dollar was sitting at a 10-month low of 1.7012.
The dollar continued its run of choppy trading versus the yen, firming up slightly to 96.30. On a longer term basis, the dollar is virtually unchanged from where it began this summer.
Against the loonie, the dollar dropped to C$1.0816, extending its big losses from the previous session. In the process, the dollar slipped back toward a 10-month low of $1.0630.
On the economic front, traders will focus on a few key economic data releases, including retail sales for July. Economists estimate a 0.7% increase in the retail sales and a 0.1% climb in retail sales excluding autos.
The Labor Department will be releasing the customary weekly jobless claims for the week ended ended August 8th at 8:30 am ET. Economists expect the claims to clock 545,000.
Traders will also be presented with the import & export price indices for July at 8:30 am ET and business inventories report for June at 10:00 am ET.
The Federal Open Market Committee, the policy-making arm of the Federal Reserve, announced Wednesday that it was maintaining the target range for its benchmark federal funds rate at zero to 0.25 percent.
The Fed also repeated its belief that low rates will persist for what it calls an extended period. The central bank added that economic activity is leveling out.
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