The dollar held
firm on Friday after upbeat U.S. jobless claims data made views swing
back in favor of an earlier rate hike by the Federal Reserve, while the
euro stayed under pressure ahead of a crunch meeting on Greece's bailout
program.
The dollar index stood
at 94.367, having gained 0.2 percent on Thursday as traders put their
focus back on the relative strength of the U.S. economy.
Initial claims for state unemployment benefits fell 21,000, about twice as much as expected, to a seasonally adjusted 283,000, offering fresh evidence the U.S. labor market was gathering steam.
The
data helped reverse expectations of a possible delay in Fed rate hikes
that arose when minutes of its last policy meeting, published on
Wednesday, showed policymakers were concerned about increasing rates too
soon.
"Although the dollar slipped on dovish Fed minutes, the market is coming to think that the minutes are a bit stale because they don't reflect the strong (January) payrolls data," said Osao Iizuka, chief currency dealer at Sumitomo Mitsui Trust Bank.
U.S. debt yields also rose on Thursday, helping to lift the dollar, particularly against the yen, which traditionally has a strong inverse correlation with U.S. yields.
The dollar fetched 118.89 yen, compared to Thursday's low of 118.42 yen.
Initial claims for state unemployment benefits fell 21,000, about twice as much as expected, to a seasonally adjusted 283,000, offering fresh evidence the U.S. labor market was gathering steam.
"Although the dollar slipped on dovish Fed minutes, the market is coming to think that the minutes are a bit stale because they don't reflect the strong (January) payrolls data," said Osao Iizuka, chief currency dealer at Sumitomo Mitsui Trust Bank.
U.S. debt yields also rose on Thursday, helping to lift the dollar, particularly against the yen, which traditionally has a strong inverse correlation with U.S. yields.
The dollar fetched 118.89 yen, compared to Thursday's low of 118.42 yen.
No comments:
Post a Comment