Investing.com - The U.S. dollar edged higher against the euro and the pound on Thursday, as concerns over the U.S. fiscal cliff enhanced the safe haven appeal of the greenback, offsetting the announcement of fresh easing measures by the Federal Reserve.
During U.S. morning trade, the dollar was fractionally higher against the euro, with EUR/USD dipping 0.06% to 1.3066.
The U.S. Department of Labor said the number of people filing for initial jobless benefits fell by 29,000 to 343,000 last week, against expectations for a decline of 2,000. The previous week’s figure was revised up to 372,000 from a previously reported 370,000.
Separately, the Commerce Department said U.S. retail sales rose 0.3% in November, missing expectations for a 0.5% increase.
Meanwhile, official data showed that producer price inflation in the U.S. fell 0.8% last month, compared to forecasts for a 0.5% decline.
The U.S. central bank said Wednesday that it would continue to purchase USD85 billion a month of government bonds and mortgage based securities in order to shore up the economic recovery.
The Fed also said that interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.
Investor focus shifted back to negotiations to avoid the U.S. fiscal cliff following the central bank announcement, amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
In the euro zone, finance ministers agreed a deal on rules for supervising the bloc’s banks earlier in the day.
Ministers also released EUR49.1 billion of financial aid for Greece, after the country completed a scheme to buy back its debt from private investors this week.
Elsewhere the greenback was trading close to eight-month highs against the yen, with USD/JPY up 0.29% to 83.49.
The yen remained under pressure on expectations that general elections in Japan on Sunday will add to political pressure on the BoJ to step up monetary easing measures.
The greenback was lower against the pound and the Swiss franc, with GBP/USD sliding 0.16% to 1.6121 and USD/CHF down 0.16% to 0.9249.
Earlier Thursday, the Swiss National Bank kept interest rates on hold at zero and said that it was ready “to take further measures at any time" should conditions require.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.03% to 0.9848, AUD/USD down 0.28% to 1.0524 and NZD/USD up just 0.01% to 0.8435.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.15% to 80.06.
During U.S. morning trade, the dollar was fractionally higher against the euro, with EUR/USD dipping 0.06% to 1.3066.
The U.S. Department of Labor said the number of people filing for initial jobless benefits fell by 29,000 to 343,000 last week, against expectations for a decline of 2,000. The previous week’s figure was revised up to 372,000 from a previously reported 370,000.
Separately, the Commerce Department said U.S. retail sales rose 0.3% in November, missing expectations for a 0.5% increase.
Meanwhile, official data showed that producer price inflation in the U.S. fell 0.8% last month, compared to forecasts for a 0.5% decline.
The U.S. central bank said Wednesday that it would continue to purchase USD85 billion a month of government bonds and mortgage based securities in order to shore up the economic recovery.
The Fed also said that interest rates would remain close to zero as long as inflation forecasts remain near the bank’s 2% target and until the U.S. unemployment rate declines to 6.5% or less.
Investor focus shifted back to negotiations to avoid the U.S. fiscal cliff following the central bank announcement, amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.
In the euro zone, finance ministers agreed a deal on rules for supervising the bloc’s banks earlier in the day.
Ministers also released EUR49.1 billion of financial aid for Greece, after the country completed a scheme to buy back its debt from private investors this week.
Elsewhere the greenback was trading close to eight-month highs against the yen, with USD/JPY up 0.29% to 83.49.
The yen remained under pressure on expectations that general elections in Japan on Sunday will add to political pressure on the BoJ to step up monetary easing measures.
The greenback was lower against the pound and the Swiss franc, with GBP/USD sliding 0.16% to 1.6121 and USD/CHF down 0.16% to 0.9249.
Earlier Thursday, the Swiss National Bank kept interest rates on hold at zero and said that it was ready “to take further measures at any time" should conditions require.
The greenback was mixed against its Canadian, Australian and New Zealand counterparts, with USD/CAD edging up 0.03% to 0.9848, AUD/USD down 0.28% to 1.0524 and NZD/USD up just 0.01% to 0.8435.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.15% to 80.06.