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Dollar Drifts Lower Against Major Rivals

The U.S. dollar drifted down on Thursday amid expectations the Federal Reserve might stop hiking rates later this year in the event of the tighter policy resulting in an economic slowdown.

Investors also digested a slew of U.S. economic data.

Data from the Labor Department showed initial jobless claims dipped to 210,000 in the week ended May 21st, a decrease of 8,000 from the previous week's unrevised level of 218,000. Economists had expected jobless claims to edge down to 215,000.

Meanwhile, a separate report from the Commerce Department showed economic activity in the U.S. slumped by slightly more than previously estimated in the first quarter of 2022.

A report from the Commerce Department said real domestic product slid by 1.5% in the first quarter compared to the previously reported 1.4% drop. Economists had expected the decrease in GDP to be revised to 1.3%.

The slightly bigger than expected pullback came after GDP skyrocketed by 6.9% in the fourth quarter of 2021.

The National Association of Realtors also released a report showing pending home sales plummeted by much more than expected in the month of April, plunging by 3.9% to 99.3 in April after tumbling by 1.6% to a revised 103.3 in March.

Economists had expected pending home sales to descend by 2% compared to the 1.2% slump originally reported for the previous month.

The dollar index has dropped to 101.76, down 0.29% from the previous close.

Against the Euro, the dollar has weakened to $1.0729 from $1.0681.

The dollar is trading at $1.2606, losing ground from $1.2576. Against the Yen, the dollar is weaker, fetching 127.06 of the Japanese currency per dollar, compared with 127.27 yen on Wednesday.

Against the Aussie, the dollar has weakened to $0.7097 from $0.7087. The Swiss franc is stronger at 0.9591 a dollar, up by about 0.3% from the previous close.

The Loonie has firmed to C$1.2775 a dollar from C$1.2819 as crude oil prices rose sharply. On a seasonally adjusted monthly basis, Canadian retail sales were flat in March following the downwardly revised 0.2% rise in February. Economists were looking for a gain of 1.4%.

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