RTTNews - The dollar held its ground versus other majors Thursday morning in New York, getting a reprieve for the moment after suffering steep losses over the past month. The buck surged versus the yen, rising to a 2-week high after Moody's Investors Service said that its Aaa credit rating on the U.S. has a stable outlook.
Thursday's trading is likely to be impacted by a series of economic reports, including reports on weekly jobless claims and new home sales.
Oil may also be in focus after reports out of Vienna indicated that OPEC will leave its output unchanged. Later, the Energy Information Administration releases its weekly oil inventories report.
Signs that the global economy may be on the mend have fueled risk aversion of late, giving higher-yielding currencies a boost at the expense of the dollar, which soared to multi-year highs during the heart of the financial crisis.
The dollar soared versus the yen over the past twelve hours, rising to 97 from yesterday's level near 95. The buck had slumped versus the yen in May, but the yesterday's statement from Moody's helped the dollar regain its safe haven status.
The dollar was stable versus the euro Thursday morning, bouncing between 1.3800 and 1.3900. The buck has managed to steady since hitting a 4-month low of 1.4050 last week.
Eurozone economic sentiment improved for the second straight month in May after reaching a historical low in March, results of a closely watched survey showed Thursday.
The economic sentiment index rose to a six-month high of 69.3 in May from 67.2 in April, the European Commission's monthly survey revealed. The reading stood above the expected level of 69.
The dollar was steady at 1.5920 versus the sterling, improving from yesterday's 6-month low of 1.6085. Earlier in the year, the dollar hit a 23-year high of 1.3501 versus its British counterpart, but is now paying the price on speculation that move was away overdone.
The Commerce Department is also due to release its new home sales report for April at 10 AM ET. The consensus estimate calls for an increase in new homes sales to 363,000.
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