The Dollar gained versus the EUR and other higher yielding currencies on Thursday following the release of weak U.S. economic data and a steep drop in global equities. The Dollar index rose to 75.3108 from 75.108 late Wednesday. The Dollar was supported versus other currencies as U.S. stocks fell, following weakness in European and Asian equities. The Dollar tends to have an inverse relationship to moves by equities and commodities throughout the global financial crisis.
The U.S. Labor Department said 505,000 Americans filed initial claims for unemployment benefits in the latest week, unchanged from the previous week and a level considered still too high to indicate payrolls numbers will turn positive in the near term. U.S. leading indicators rose 0.3% in October after a 1% gain in September; signaling the U.S economy might be recovering at a decelerating rate.
Currency movements have been largely confined to recent ranges as the market continues to debate the speed of economic recovery and the direction of U.S. monetary policy.