Dollar Loses Ground Against Major Counterparts
(RTTNews) - The U.S. dollar drifted lower against its major counterparts on Thursday after data showing a much bigger than expected increase in U.S. jobless claims added to recently renewed optimism that the Federal Reserve will lower interest rates in the coming months.
The report said initial jobless claims climbed to 231,000, an increase of 22,000 from the previous week's revised level of 209,000.
Economists had expected jobless claims to inch up to 210,000 from the 208,000 originally reported for the previous week.
With the much bigger than expected increase, jobless claims reached their highest level since hitting 234,000 in week ended August 26th.
While the Fed is still widely expected to leave interest rates unchanged in June, the chances rates will be lower by September have reached 89.3%, according to CME Group's FedWatch Tool.
The dollar index dropped to 105.21, losing about 0.31%.
Against the Euro, the dollar weakened to 1.0784 from 1.0750. The dollar eased to 1.2523 against Pound Sterling from 1.2497. Against the Japanese currency, the dollar is down marginally at 155.47 yen.
The Aussie firmed against the dollar, gaining more than 0.6 to US$0.6621. The dollar weakened against Swiss franc to CHF0.9058. Against the Loonie, the dollar eased to C$1.3678 from C$1.3723.
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