Dollar remains broadly lower after fall in jobless claims

Published 10/11/2012, 11:19 AM
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Investing.com - The U.S. dollar remained broadly lower against the other major currencies on Thursday, following U.S. data showing that initial jobless claims fell to a more than four-year low last week, while hopes that Spain will formally request a bailout also buoyed market sentiment.

The dollar was lower against the euro, with EUR/USD rising 0.49% to 1.2937.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 30,000 to a seasonally adjusted 339,000, compared to expectations for an increase of 1,000 to 370,000.

Following the data, the Wall Street Journal reported that a spokesman for the Labor Department said one large state had not reported additional quarterly figures, accounting for a significant part of the steep decline in claims.

Demand for the single currency remained underpinned by hopes that a ratings downgrade on Spain by Standard & Poor’s would force Madrid to formally request a bailout, which investors hope will ease the debt crisis in the euro zone.

S&P cut the country’s credit rating to BBB-minus with a negative outlook late Wednesday, just one notch above junk status, citing “mounting risks to Spain’s public finances.”

Elsewhere, the dollar remained close to the session high against the yen, with USD/JPY up 0.38% to 78.48.

The greenback was lower against the pound and the Swiss franc, with GBP/USD up 0.18% to 1.6032 and USD/CHF down 0.43% to 0.9351.

The greenback was broadly weaker against its Canadian, Australian and New Zealand counterparts, with USD/CAD falling 0.41% to 0.9777, AUD/USD up 0.35% to 1.0270 and NZD/USD rising 0.18% to 0.8178.

In Canada, official data showed that the trade deficit narrowed to CAD1.3 billion in August, compared to expectations for a deficit of CAD2.0 billion.

The Australian dollar remained supported after official data showed that the country’s economy added 14,500 jobs in September, easily beating expectations for an increase of 3,800.

The country’s unemployment rate ticked up to 5.4% in September, against expectations for an increase to 5.3%, from 5.1% in August.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.16% to 79.87.

Also Thursday, the Commerce Department said the U.S. trade deficit widened to USD44.2 billion in August, broadly in line with market expectations, as imports outpaced exports.


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