The dollar rose against the yen and euro on Thursday as investors rebalanced their portfolios towards end of April and trading thinned heading into May holiday in Europe. Earlier in the day, the single currency surged to as high as 1.3385 versus the greenback but the pair retreated after data from eurozone showed employment rose to 8.9 percent in March form an upwardly revised 8.7 percent in February that implied the eurozone economy remained weak. In late New York session, the euro was trading at around 1.3250 versus the dollar and 130.60 against the yen.
The ICE Future dollar index (which measure the dollar’s strength against a basket of six other major currencies) traded flatten at 84.631 in late New York session while Japanese yen declined to as low as 99.00, 131.28, 146.95 and 72.57 against the U.S. dollar, euro, sterling and Australian dollar respectively before recovering.
Meanwhile, sterling rose to a two-week high against the dollar in early trading on Thursday as risk appetite resumed as share price in Europe gained and an improvement in British consumer confidence. The British pound was pushed higher to 1.4949 against the dollar but news that U.S. automaker Chrysler would file for bankruptcy later in the day capped the pair’s upside and price fell to as low as 1.4703, last trading at around 1.4810 in late New York session.
On the data font, U.S. initial jobless claims fell by 14,000 to 631,000 in the week that ended April 25, from a revised 645,000 the prior week while the number of people staying on jobless benefit rolls increased by 133,000 to 6.27 million, the 13th straight week the figure has set a record. A separate report showed the consumer spending in the U.S. fell 0.2 percent in March, more than the consensus forecast of a drop of 0.1 percent and compared to 0.2 percent gain in previous month as mounting job losses threatened to weigh on a projected economic recovery later this year.
Economic data releases on Friday include Japan National CPI, Tokyo CPI, household spending and unemployment rate, U.K. PMI manufacturing, and U.S. University of Michigan survey, factory orders and ISM manufacturing. Markets through much of Europe are closed on Friday due to ‘May Day’.