The dollar held its ground at 1-week highs against its peers today on thin volume traded, following the release of favorable US data as chances of a rate increase by the Federal Reserve next month underpinned the greenback. US jobless claims filed last week rose by 6,000 to total 265,000 from the previous week’s total of 259,000, while experts forecast an increase of 9,000 to total 268,000. US durable goods orders, which include transportation items, dropped 2.8% in February while experts forecast a decline of 2.9%. Core durable goods orders excluding transportation items dropped 1.0% in February, compounding forecasts for a decrease of 0.2%. The US dollar index was up 0.15%, trading at 96.20, which is its highest level since March 16.
The euro weakened against the dollar with the pair down 0.12%, trading at 1.1167 off its session low of 1.1143, after having come off its session high of 1.1187 reached earlier in the day. Markets remained on edge after news of Tuesday’s terrorist attacks in Brussels, leaving 34 people dead and hundreds injured, filled the airwaves. As the Federal Reserve indicates a hawkish outlook, the euro continues to come off 5-month highs, extending losses for 4 consecutive sessions.
The pound strengthened against the dollar with the pair up 0.38%, trading at 1.4173 off its session high of 1.4182, after having come off its session low of 1.4056 reached earlier in the day. The UK Office for National Statistics released data which revealed that retail sales dropped 0.4% in February, while analysts expected a drop of 0.7% following an increase of 2.3% in January. Core retail sales excluding automobile sales inched down 0.2% in February, beating expectations of a 1.0% decrease following a surge of 2.3% in January. The pound had dropped to its lowest level in 15 months against the euro as doubt surrounding Britain’s future in the European Union continued to exhibit downside pressure.
The yen weakened against the dollar with the pair up 0.30%, trading at 112.72 off its session high of 113.00, after having come off its session low of 112.29 reached earlier in the day. Japan’s Prime Minister Shinzo Abe, in denouncing the terrorist attacks in Brussels, commented that he does not anticipate the Bank of Japan intervening directly in order to deliberately weaken the yen. He added that although the yen may weaken as a result of the BOJ’s policy initiatives, the central bank will not adopt monetary policies that will specifically weaken the yen going forward.
The Australian, New Zealand and Canadian dollars weakened against the greenback as commodity-associated currencies were pressured to the downside on the back of tanking oil prices, following the release of data yesterday which revealed that US oil stockpiles climbed to record highs last week. The Aussie dollar retreated 0.24% against the greenback with the pair trading at 0.7515 off its session low of 0.7477, after having come off its session high of 0.7536 reached earlier in the day. The kiwi dollar lost 0.15% against the greenback with the pair trading at 0.6693 off its session low of 0.6671, after having come off its session high of 0.6722 reached earlier in the day. The kiwi had strengthened earlier in the session following the release of trade balance data which showed a narrower-than-forecast deficit of NZD 3.32 billion. The loonie declined 0.51% against the dollar with the pair trading at 1.3273 off its session high of 1.3295, after having come off its session low of 1.3197 reached earlier in the day. Oil prices slid to 1-week lows, with US crude down 1.94%, trading at $39.02 per barrel, while Brent dropped 1.83%, trading at $39.73 per barrel.