Dollar Stays Firm Against Major Counterparts

(RTTNews) - The U.S. dollar extended previous session's gains and stayed firm against its major counterparts on Thursday thanks to a couple of stronger than expected economic reports.

A report from the Commerce Department said the surge by gross domestic product in the second quarter was upwardly revised to 3% from the previously reported 2.8%. Economists had expected the pace of GDP growth to be unrevised.

With the upward revision, the pace of GDP growth in the second quarter showed an even faster acceleration compared to the 1.4% jump in the first quarter. The report also showed modest downward revisions to the pace of consumer price growth during the second quarter.

A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits edged slightly lower in the week ended August 24th.

The report said initial jobless claims slipped to 231,000, a decrease of 2,000 from the previous week's revised level of 233,000.

Economists had expected jobless claims to come in unchanged compared to the 232,000 originally reported for the previous week.

Traders looked ahead to the release of closely watched readings on consumer price inflation on Friday.

The data is not likely to impact forecasts for an interest rate cut by the Federal Reserve next month but could impact expectations regarding how quickly the central bank will lower rates.

The dollar index climbed to 101.588 after encouraging economic data, and despite easing to 101.38 subsequently, remained firm, gaining nearly 0.3% over its previous close.

Against the Euro, the dollar firmed to 1.1079 from 1.1120, and against Pound Sterling, it strengthened to 1.3171 from 1.3190.

The dollar gained against the Japanese currency, fetching 145.00 yen a unit, compared to 144.59 yen on Wednesday. Against the Aussie, the greenback weakened to 0.6798, losing marginal ground.

The dollar firmed against Swiss franc, fetching CHF 0.8471 a unit, compared to the previous close of CHF 0.8422. Against the Loonie, the dollar settled marginally down at C$ 1.3486.