The greenback strengthened broadly (except vs the Japanese yen) on Thursday as equity markets around the globe fell, reviving demand for safe-haven assets. U.S. jobless claims came in as widely expected at 505,000 but with an upwardly revised of previous reading of 505,000. U.S. Philadelphia Fed business conditions index came in at 16.7, the highest since June 2007, versus the expectation of 12.0. U.S. leading indicators rose by 0.3%, slightly less than economists' forecast of 0.5% increase.

The Japanese yen started to rally against the single currency, the British pound, and Australian dollar and touched session highs of 131.76, 147.36, and 81.09 respectively in New York morning while usd/jpy also tumbled to a multi-week low of 88.63 before recovering on profit-taking.

Similarly, the dollar rallied against European currencies on Thursday amid increased demand for safe-haven assets following declines in equity and commodity markets. Earlier in Asian session, an article on U.K. FT on warning by a prominent property developer of an asset bubble in the Chinese real estates prompted investors to move out of riskier assets. Euro, sterling and Swiss franc hit their intra-day lows against the dollar at 1.4843, 1.6606, 1.0196 respectively before recovering in New York afternoon on short-covering as DJI pared some losses and closed down 94 points at 10,332. Earlier, U.K. retail sales rose by 0.4% m/m and 3.4% y/y in October versus economists' expectation of 0.5% m/m and 2.9% y/y respectively. U.K. October PSNCR came in at 5.899 billion pounds versus the forecast of 3.300 billion pounds. An article from the Telegraph stated that U.K. banks are 'more challenged than in any other market' also weighed on sterling.

Data to be released on Friday include Japan BOJ rate decision, and German PPI. ECB President Trichet will make a speech at 10:30GMT