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Dollar remains broadly lower, Yellen speech on tap

Published 09/24/2015, 10:50 AM
© Reuters.  Dollar still on the downside ahead of Yellen remarks
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Investing.com - The dollar remained broadly lower against the other major currencies on Thursday, after the release of mixed U.S. economic reports and as sentiment on the greenback remained fragile ahead of a speech by Federal Reserve Chair Janet Yellen due later in the day.

The dollar was lower against the yen, with USD/JPY down 0.67% at 119.47.

The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits in the week ending September 19 increased by 3,000 to 267,000 from the previous week’s total of 264,000, compared to expectations for a 7,000 rise.

Separately, the U.S. Commerce Department said that total durable goods orders decreased by 2.0% last month, matching forecasts. Orders for durable goods in July were revised to a gain of 1.9% from a previously reported increase of 2.2%.

Core durable goods orders, which exclude volatile transportation items, were flat in September, compared to expectations for an increase of 0.1%. Core durable goods orders rose 0.4% in July.

Data also showed that U.S. new home sales increased by 5.9% to 552.000 units in August from revised total of 522.000 units the previous month. Analysts had expected new home sales to rise by 1.6% in August.

Investors were looking ahead to a speech by Fed Chair Janet Yellen later in Thursday for additional clarity on the bank’s decision last week to leave interest rates on hold.

EUR/USD climbed 0.70% to 1.1263.

The German research institute Ifo earlier reported that its business climate index ticked up to 108.5 this month from August’s 108.4. It was the highest reading in four months and was ahead of forecasts of 108.0.

The single currency also remained supported after European Central Bank President Mario Draghi said on Wednesday that it was too early decide whether or not to add stimulus measures.

Elsewhere, the dollar was steady against the pound, with GBP/USD at 1.5255 but lower against the Swiss franc, with USD/CHF declining 0.90% to 0.9710.

The Australian dollar remained lower, with AUD/USD slipping 0.14% to 0.6991, while NZD/USD jumped 0.95% to 0.6338.

USD/CAD rose 0.24% to trade at 1.3353.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.58% at 95.84, off one-month highs of 96.65 reached on Wednesday.

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