Market accounts

US dollar slips from year-ago high on weak data, consolidation

US dollar banknotes can be seen in this illustrative photo taken on February 12, 2018. REUTERS / Jose Luis Gonzalez / Illustration / File Photo

  • US weekly jobless claims shake dollar luster
  • U.S. GDP data confirms Q2 growth
  • Dollar posts biggest daily percentage loss since mid-August
  • Euro at its lowest since July 2020 against the dollar

NEW YORK, Sept. 30 (Reuters) – The dollar edged down from a one-year high on Thursday in choppy trading, slightly under pressure from an increase in weekly jobless claims in the United States, as investors consolidating also their earnings after a sharp rise in recent sessions.

Overall, the greenback has been supported by the surge in yields on US Treasuries, as the Federal Reserve expects its monetary stimulus to wane from November even as global growth slows.

Thursday’s economic data, however, took some of the dollar’s strength.

The first jobless claims in the United States rose for the third week in a row to 362,000 for the period ending Sept. 25, data showed. Economists polled by Reuters predicted 335,000 jobless applicants for the past week. Read more

That said, another report confirmed that U.S. economic growth accelerated in the second quarter, at a rate of 6.7%, thanks to the government’s pandemic relief money, which boosted spending by the government. consumption. Read more

“Even if the US dollar falls a little more in the near term, we expect it to resume its recent rally in due course,” wrote Joseph Marlow, deputy economist at Capital Economics, in a research note.

“While long-term yields have risen in most major economies, US bond yields have risen more than most and, most importantly, have been largely due to higher real yields, reflecting expectations of a tighter monetary policy. “

The dollar index, which measures the currency against a basket of six rivals, hit 94.504, its highest since September 28 last year. It was down 0.2% to 94.199.

For the month, the dollar ended up 1.7%, its second consecutive monthly gain. In the third quarter, the dollar appreciated by 2%.

Marc Chandler, chief market strategist at Bannockburn Forex, wrote in a research note that “a tone of consolidation is evident” after the dollar surge on Wednesday.

The dollar’s recent gains came despite a political stalemate in Washington over the US debt ceiling that threatens to shut down much of government. Read more

Yields on the benchmark 10-year Treasury bond stood at 1.524%, remaining near a three-month high reached on Tuesday at 1.567%.

The dollar hit 112.07 yen, the highest since February 2020. It last lost 0.5% to 111.36 yen, its biggest daily percentage decline since mid-August.

For the month of September, however, the dollar posted a gain of 1.2% against the yen, and a more modest increase of 0.4% for the third quarter.

The euro lost 0.1% to $ 1.1586, after hitting $ 1.1563 earlier, its lowest since July 2020.

The single European currency was down 1.9% against the dollar for the month and 2.2% weaker for the third quarter.

The risk-sensitive Australian dollar strengthened 0.8% to US $ 0.7232, after falling 0.9% overnight as iron ore prices rallied ahead of the holidays of Golden Week in Australia’s main business destination, China.

A slight improvement in overall risk sentiment after days of gloom was seen in the cryptocurrency markets, as bitcoin rose 5.7 %% to $ 43,929 and ether rebounded from 6.2 % to $ 3,028. Both coins are down between 20% and 27% from their September peaks.

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Currency bid price at 3:20 p.m. (1920 GMT)

Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by William Maclean, Hugh Lawson and Jonathan Oatis

Our Standards: The Thomson Reuters Trust Principles.

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