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Dollar remains broadly lower after U.S. data

Published 04/28/2016, 08:42 AM
© Reuters.  Dollar holds onto losses as U.S. GDP data disappoints
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Investing.com - The dollar remained broadly lower against the other major currencies on Thursday, after data showed that the U.S. economy grew at a slower pace than expected in the first quarter and that U.S. jobless claims increased less than initially predicted.

USD/JPY dove 2.79% to 108.34, the lowest since April 18.

Preliminary data showed that U.S. gross domestic product rose 0.5% in the first quarter, disappointing expectations for a growth rate of 0.7% and down from 1.4% in the three months to December.

At the same time, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending April 23 decreased by 9,000 to a seasonally adjusted 257,000 from the previous week’s revised total of 248,000.

Analysts had expected jobless claims to rise by 12,000 to 260,000 last week.

The data came a day after the Fed left interest rates unchanged close to zero on Wednesday and offered little guidance on future rate hikes.

On the other hand, the yen remained broadly supported after the Bank of Japan kept the deposit rate at minus 0.1% and its asset purchases at ¥80 trillion per year. It also pushed back the expected data for reaching its 2% inflation target.

Ahead of the meeting expectations had been building for more monetary stimulus measures.

EUR/USD edged up 0.16% to trade at 1.1342.

Earlier Thursday, official data showed that Germany’s unemployment rate remained unchanged at 6.2% this month, in line with expectations.

The dollar was lower against the pound and the Swiss franc, with GBP/USD up 0.22% at 1.4574 and with USD/CHF sliding 0.36% to 0.9674.

The Australian dollar was steady, with AUD/USD at 0.7605. while NZD/USD rallied 1.02% to 0.6953.

In a widely expected move, the RBNZ left its benchmark interest rate at 2.25% at the conclusion of its monthly policy meeting.

The New Zealand central bank said that "monetary policy will continue to be accommodative" and added that “further policy easing may be required to ensure that future average inflation settles near the middle of the target range.”

Elsewhere, USD/CAD fell 0.229% to a fresh nine-month low of 1.2571, as higher oil prices continued to support the commodity-related loonie.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.53% at 93.87, the lowest since April 12.

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