The U.S dollar extended gains on Thursday after the U.S. Labor Department reported that the number of initial jobless claims in the latest week fell 8,000 to 470,000.
Against its Japanese counterpart, the Dollar reversed earlier gains to trade at 89.89 yen, after topping 90 yen earlier and compared to 89.99 yen late Wednesday. The greenback pared its gains versus the Japanese yen after U.S. data showed initial jobless claims fell less than expected last week, while durable goods orders increased less than expected in December.
The U.S. dollar's gains accelerated against major currencies after the Federal Reserve kept Interest Rates near zero, as expected, but issued a more upbeat assessment of the U.S. economy. Today, the main data focus will be U.S. fourth-quarter gross domestic product (GDP) at 1330 GMT. U.S. GDP may have expanded at a 4.7% pace from October through December, more than double the prior quarter's growth rate and the strongest since the first three months of 2006.