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Dollar lower vs. yen after U.S. jobless claims fall

Published 04/11/2013, 08:53 AM
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Investing.com - The dollar fell to session lows against the yen on Thursday and pared losses against the euro after official data showed that U.S. initial jobless claims fell more than expected last week.

During European afternoon trade, the dollar fell to session lows against the yen, with USD/JPY down 0.49% to 99.30, off session highs of 99.88.

The Department of Labor said the number of people who filed for unemployment assistance in the U.S. fell by 42,000 to a seasonally adjusted 346,000, last week compared to expectations for a decrease of 23,000.

The data eased concerns that the recovery in the labor market was losing momentum after U.S. nonfarm payrolls data for March came in far below expectations.

The dollar pulled back from five-week lows against the euro, with EUR/USD rising 0.28% to 1.3106, off session highs of 1.3138.

The single currency remained supported as last week’s radical monetary easing measures by the Bank of Japan bolstered demand for higher yielding assets.

Market sentiment was also boosted after data showed that China saw a large increase in bank lending in March, adding to signs of an economic recovery, one day after trade data indicated that domestic demand remains strong.

The dollar was still close to seven-week lows against the pound, with GBP/USD rising 0.43% to 1.5393.

The dollar was trading within striking distance of six-week lows against the Swiss franc, with USD/CHF down 0.31% to 0.9295.

The greenback was near multi-month lows against its Canadian, Australian and New Zealand counterparts, with USD/CAD losing 0.43% to trade at 1.0097, AUD/USD rising 0.17% to 1.0559 and NZD/USD advancing 0.96% to 0.8657.

The Australian dollar shrugged off data showing that the country’s economy shed 36,100 jobs in March, far more than the 5,000 loss forecast by economists.  The unemployment rate rose to 5.6%, from 5.4% in February.

The New Zealand dollar rallied after the country’s finance minister said the 2013 budget confirmed that the country was on track to post a budget surplus by 2015.

The kiwi received further support from strong domestic housing and manufacturing sector data.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.42% to 82.25.

Also Thursday, official data showed that U.S. import prices fell 0.5% in March, in line with expectations.



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