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Forex - Dollar remains broadly supported vs. rivals

Published 09/25/2014, 10:44 AM
Dollar holds gains, near 4-year highs against counterparts
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Investing.com - The dollar remained close to four-year highs against a basket of other major currencies on Thursday, after data showed that U.S. jobless claims rose less than expected last week and as expectations for an early U.S. rate hike continued to support.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 20 increased by 12,000 to 293,000, from the previous week's revised total of 281,000.

Analysts had expected jobless claims to rise by 19,000 to 300,000 last week.

Data also showed that U.S. durable goods orders dropped 18.2% in August, after a revised increase of 22.5% in July. Analysts had expected durable goods orders to decline by 18.0% last month.

Core durable goods orders, which exclude transportation items, rose 0.7% last month, in line with expectations, after a 0.5% fall in July.

The dollar strengthened earlier after Dallas Federal Reserve President Richard Fisher said the U.S. central bank may start raising interest rates around the spring of 2015.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.19% to 85.31, not far from 85.61, the highest level since July 2010.

The euro dropped to nearly two-year lows against the dollar, with EUR/USD last down 0.23% at 1.2750 after European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.

"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," Draghi said.

On Wednesday, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.

Elsewhere, GBP/USD trimmed losses and held steady at 1.6332, after Bank of England Governor Mark Carney said that interest rates are likely to rise in the near future.

USD/CHF added 0.11% to trade near 14-month highs at 0.9465, while USD/JPY slid 0.34%, but still hovered close to a six-year peak at 108.67.

The Australian and New Zealand dollars remained lower. AUD/USD retreated 0.74% near seven-month lows at 0.8820. NZD/USD plummeted 1.55% to trade near a one-year trough at 0.7951, as Reserve Bank of New Zealand Governor Graeme Wheeler signaled that he is prepared to sell the nation's currency to weaken it.

Meanwhile, USD/CAD gained 0.34% to 1.1096, off six-month highs hit earlier in the session.

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