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U.S. Dollar Gives Back Ground After Seeing Early Strength

After moving to the upside in morning trading, the value of the U.S. dollar has turned lower over the course of trading on Thursday. The U.S. dollar index has dipped 0.2 percent to 92.74 after reaching a high of 93.24

The greenback is also trading at 105.78 yen versus the 106.12 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1861 compared to yesterday's $1.1838.

The dollar initially benefited from its appeal as a safe have following the release of a report from the Labor Department showing an unexpected increase in first-time claims for U.S. unemployment benefits in the week ended August 15th.

The report said initial jobless claims climbed to 1.106 million, an increase of 135,000 from the previous week's revised level of 971,000.

The increase surprised economists, who had expected jobless claims to drop to 925,000 from the 963,000 originally reported for the previous week.

However, the currency has given back ground over the course of the day following the strong upward move seen on Wednesday in response to the minutes of the Federal Reserve's latest monetary policy meeting.

In the minutes, the Fed said the coronavirus pandemic will weigh heavily on economic activity, employment, and inflation in the near term and poses considerable risks to the economic outlook over the medium term.

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