RTTNews - The dollar was stable versus the euro and sterling but remained under pressure against the yen Thursday morning in New York as traders looked ahead to another round of US jobs data.

Traders were also keeping an eye on the government report on wholesale price inflation in the month of April.

May has been a rough month versus the dollar amid giddiness about the results of the bank stress test and gains among equities gave high-yielders like the euro and sterling a major boost.

However, risk appetite has waned over the past few days as the steam has come out the stock rally.

The dollar is usually bolstered when demand for a safe have picks up, but the yen has been favored this week amid speculation that the US aaa rating may be at risk.

The dollar fell to a nearly 2-month low of 95.10 versus the yen. The pair has spent the better part of the 2009 between 90 and 100, with the buck recovering from a 13-year low near 87.

The dollar held its ground versus the euro, staying near 1.3550. Earlier in the week, the dollar fell to a nearly 2-month low of 1.3721.

Thursday, the European Central Bank in its Monthly Bulletin said the Eurozone annual HICP inflation rate is expected to stay below 2% in 2010, reflecting ongoing sluggish demand in the euro area and elsewhere.

The dollar was also able to find its footing versus the sterling, holding near 1.5100. Wednesday morning, the buck slipped to a new 4-month low of 1.5352, but has stabilized amid signs that the recent bear market rally in equities may be over.

The U.S. Labor Department is scheduled to release a report on the producer price index for April at 8:30 AM ET on Thursday. The index measures the average change over time in the prices received by domestic producers of goods and services. Economists expect the headline index and the core index for April to show unchanged readings.

The Labor Department is due to release its customary weekly jobless claims report for the week ended May 9th at 8:30 AM ET.

Initial claims for unemployment benefits fell to 601,000 for the week ended May 2nd, down 34,000 from the previous week's revised figure of 635,000. Economists expected claims to increase to 635,000 from the originally reported figure of 631,000 for the previous week.

The International Energy Agency, or IEA, revised its forecast for 2009 global oil demand by 0.2 mb/d to 83.2 mb/d from 83.4 mb/d forecast in April.

As prospects of a strong economic recovery later this year remain elusive, the weakness in oil demand is expected to continue, the IEA said in its latest Oil Market Report.

For comments and feedback: contact editorial@rttnews.com