Thursday, the dollar surged to near the 100 level against the yen for the first time in 5-months. But the dollar slipped to new multi-day lows against the euro and the pound. The dollar weakened against the franc too.

The dollar continued to creep higher versus Japanese yen and is trading near its century mark for the first time since November 2008. The dollar hit a high of 99.92 against the yen by about 6:30 am ET. The dollar-yen pair closed Wednesday's deals at 98.54. The dollar may find its target near the 100.5 level, if it strengthens further.

With the advance, the dollar continued its move away from a 13-year low of 87.08, set in January. Since then the dollar has gained 13%.

In economic news from Japan, the monetary base grew 6.9 percent year-over-year in March, to 94.46 trillion yen, according to a report released by the Bank of Japan. That's up from 93.65 trillion yen in February, which saw a 6.4 percent annual increase. On a seasonally adjusted basis, the monetary base was up 5.6 percent month-over-month at 94.3 trillion yen.

The yen fell today as a rebound in equities boosted investors' risk appetite. A surge in equities exerted downward pressure on the yen as investors see yen as a safe-haven in times of economic uncertainty. Usually, there is an inverse relationship between yen and stocks. When there is a stock market surge yen falls and vice-versa.

The US dollar fell to an 1-week low of 1.4704 against the pound by about 6:30 am ET Thursday. This may be compared to Wednesday's closing value of 1.4471. The dollar may find its foot near the 1.478 level, if it weakens further.

The pound has been rallying against the other major currencies today after a monthly report from the Nationwide Building Society showed that UK house prices increased unexpectedly in March for the first time since October 2007. House purchase activity reached highest level since May 2008, the mortgage lender said.

House prices increased 0.9% on a monthly basis in March, reversing a 1.9% fall in February. Economists were looking for another 1.5% decrease for March. Annual decline in house prices was 15.7% in March compared to 17.6% drop in February.

At about 6:20 am ET Thursday, the greenback dropped to a 6-day low of 1.3357 against the European currency. This may be compared to Wednesday's closing value of 1.3250. On the downside, the dollar may likely find its support near the 1.35 level.

At 7:45 am ET, the European central bank is scheduled to announce the monetary policy decision for the month. Analysts expect the ECB to trim interest rate by 50 bps to a record low of 1.00%. Investors also anticipate that the ECB may adopt unconventional measures such as printing money. Both the Fed and the Bank of England started the so-called quantitative easing in order to boost their ailing economy.

The dollar weakened against the franc in Asian trading, but recovered some of its losses in early European trading. But the pair lost ground after some time and hit as low as 1.1405 by about 6:35 am ET, compared to Wednesday's closing value of 1.1456. The greenback may likely find its next support level at 1.12 versus the alpine currency.

Swiss National Bank's Vice President Philipp Hildebrand said today that the central bank will continue to take all measures to prevent further strengthening of the Swiss franc and reduce deflationary pressures.

A renewed appreciation of the franc carries the danger of a sustainable deflationary momentum in Switzerland. It's about avoiding deflation by all means, Hildebrand said.

From US, the Labor Department is due to release its customary jobless claims report for the week ended March 27th at 8:30 am ET.

At 10 am ET, the Commerce Department is due to release its report on factory goods orders for February. Orders for manufactured goods are likely to have decreased 0.3% in the month.

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