The dollar bounced back and forth in early afternoon trading on Thursday in New York, moving away from its fresh two-week lows against the euro and the pound. Meanwhile, the buck extended its dramatic comeback versus the yen.

Earlier, traders digested a better-than-expected U.S. unemployment report and largely shrugged off diminished consumer income and spending figures, prompting some risk appetite on the day.

Further bolstering interest in riskier investments were results from Comcast (CMCSA) and Procter and Gamble (PG) which edged out analyst expectations.

With earnings news generally coming in above expectations, stocks and higher yielding currencies rallied.

In other news, automaker Chrysler LLC revealed it would enter Chapter 11 bankruptcy after the firm's talks with creditors to adjust its lending agreements reached an impasse.

The dollar was stable versus euro after coming under heavy pressure against the 16-nation currency overnight. The buck improved to 1.3245 from a 2-week low of 1.3387 posted in earlier dealing. With the move, the greenback continues to linger near the support level of 1.3392, set earlier in April.

Eurozone annual inflation stood at 0.6 percent in April, the same rate as in March, a flash estimate issued by the statistical office Eurostat showed Thursday. This was the lowest rate since the launch of euro ten years ago.

Eurozone's jobless rate stood at 8.9 percent in March, up from 8.7 percent in the previous month. The February jobless rate was revised from 8.5 percent reported initially. Economists were looking for a rate of 8.7 percent. A year ago, the jobless rate was 7.2 percent.

The dollar leveled off against the pound in the early afternoon, reaching 1.4829 after plunging to a fresh 12-day low of 1.4948. With the move, the buck continues to hover near its January low of 1.5070, set April 16th.

UK house prices resumed their decline in April after showing an unexpected increase in March, the latest report from the Nationwide building society said Thursday.

House prices dropped 0.4 percent month-on-month in April, indicating that March's 0.9 percent increase was a blip in a downward trend.

The greenback extended yesterday's strong gains against the yen, rising to a weekly high of 98.80. The move came after the buck plummeted to 95.62 on Tuesday, setting a five-week low. The buck has largely leveled off since hitting a 3-month high of 101.43 yen on April 6th.

On the U.S. economic front, a report from the Commerce Department showed that personal income fell 0.3 percent in March following a 0.2 percent decrease in February. Economists had been expecting a slightly more modest decrease in income of about 0.2 percent.

The report also said that personal spending fell 0.2 percent in March following an upwardly revised 0.4 percent increase in the previous month. Spending had been expected to edge down 0.1 percent compared to the 0.2 percent increase originally reported for February.

Meanwhile, the U.S. Labor Department revealed that initial jobless claims came in at 631,000 for the week ended April 25th, down 14,000 from last week's revised total of 645,000.

The 4-week moving average for initial claims, which flattens out the week-to-week fluctuations in the data, continued its recent downward trend, slipping to 637,500.

The number of people receiving ongoing unemployment help, a figure known as continuing claims, set a record for the thirteenth week in a row, climbing to 6.271 million after a revised reading of 6.138 million in the previous week.

In other news, auto icon Chrysler LLC will file Chapter 11 bankruptcy after failing to adjust its lending agreements with creditors.

Treasury officials led by Steven Rattner, head of the Obama administration's automotive task force, reportedly worked into the evening on Wednesday to persuade several hedge funds and other lenders to accept a critical deal to reduce Chrysler's debt.

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