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Dollar broadly lower vs. rivals ahead of jobless claims

Published 03/26/2015, 07:21 AM
Dollar slides against other majors with U.S. data in focus
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Investing.com - The dollar was broadly lower against a basket of other major currencies on Thursday, as investors eyed the release of U.S. jobless claims data later in the day and as a disappointing U.S. durable goods report on Wednesday continued to weigh.

The dollar remained under pressure after the U.S. Commerce Department reported on Wednesday that total durable goods orders, which include transportation items, declined 1.4% last month, compared to expectations for a gain of 0.4%.

Core durable goods orders, excluding volatile transportation items, inched down 0.4% in February, disappointing forecasts for a 0.3% gain.

The greenback has been weakening since the Federal Reserve indicated last week that it may raise interest rates more gradually than markets had expected.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.40% to 96.69.

EUR/USD gained 0.30% to 1.1002, the highest since March 5.

The euro found support after data showed that the Gfk German consumer climate index was set to rise to 10.0 in April from a reading of 9.7 the previous month, compared to expectations for an uptick to 9.8.

But investors remained cautious as Greece failed in a bid on Wednesday to secure a quick cash payment from the euro zone rescue fund to help stave off potential bankruptcy next month.

Athens had appealed for the European Financial Stability Facility to return €1.2 billion it said it had overpaid when it transferred bonds intended for bank recapitalization this month.

The Greek government is expected to present a detailed list of proposed reforms to its eurozone partners by next Monday.

The pound was trading at one-week highs, with GBP/USD up 0.43% to 1.4943.

The U.K. Office for National Statistics earlier reported that retail sales increased 0.7% last month, above forecasts for a gain of 0.4%.

Core retail sales, which exclude automobile sales, rose 0.7% last month, compared to forecasts for a 0.4% rise, after falling 0.3% in January.

Separately, the Confederation of British Industry said that its index of realized sales rose to 18 in March from 1 the previous month, exceeding expectations for a reading of 15.

Elsewhere, the dollar was sharply lower against the yen and the Swiss franc, with USD/JPY down 0.62% to 118.73 and with USD/CHF dropping 0.66% to 0.9532.

The Australian, New Zealand and Canadian dollars were broadly stronger, with AUD/USD rising 0.25% to 0.7864 and NZD/USD climbing 0.44% to 0.7641, while USD/CAD retreated 0.68% to trade at 1.2433.

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