Dollar Recovers From Early Weakness, Rises To New 52-week High

(RTTNews) - After struggling for direction during the European session and early part of the New York session on Thursday, the U.S. dollar climbed higher, scoring gains against most of its major counterparts.

Persisting geopolitical tensions pushed up the demand for the safe-haven dollar.

The dollar's initial weakness was due to dovish comments from New York Fed President Williams and Chicago Fed President Goolsbee, who said the Federal Reserve will likely keep cutting interest rates until rates get closer to neutral levels.

In economic releases today, data from the Labor Department said initial jobless claims slipped to 213,000 in the week ended November 16th, a decrease of 6,000 from the previous week's revised level of 219,000.

Economists had expected jobless claims to inch up to 220,000 from the 217,000 originally reported for the previous week.

A report released by the Federal Reserve Bank of Philadelphia on Thursday said regional manufacturing activity softened overall in the month of November.

The Philly Fed said its diffusion index for current general activity tumbled to a negative 5.5 in November from a positive 10.3 in October, with a negative reading indicating contraction. Economists had expected the index to edge down to a positive 8.0.

Existing home sales in the U.S. surged by 3.4% to an annual rate of 3.96 million in October, after slumping by 1.3% to a revised rate of 3.83 million in September, according to a report released by the National Association of Realtors. . The dollar index, which moved along the flat line and slipped to 106.46 around mid morning, climbed to a new 52-week high of 107.16 before easing a bit to 107.06, still up nearly 0.4% from previous close.

Against the Euro, the dollar strengthened to 1.0475 from 1.0546. The dollar firmed to 1.2588 against Pound Sterling, gaining from 1.2652 a unit of the British currency.

Against the Japanese currency, the dollar weakened to 154.51 yen from 155.43 yen. The Aussie edged up slightly to 0.6511 against the Aussie.

Against Swiss franc, the dollar strengthened, fetching CHF 0.8869 a unit. Against the Loonie, the dollar edged up slightly to C$ 1.3978, rising from C$ 1.3972.