The U.S. dollar stayed firm against its major rivals on Thursday as prospects of tighter monetary policy rose after data showed jobless claims came in lower than expected last week, the nation's first-quarter GDP growth was revised upwards.
Data from the Commerce Department showed that gross domestic product climbed by 1.3% in the first quarter compared to the previously estimated 1.1% increase. Economists had expected the pace of GDP growth to be unrevised.
Data from the Labor Department showed that initial jobless claims crept up to 229,000 in the week ended May 20th, an increase of 4,000 from the previous week's revised level of 225,000. Economists had expected jobless claims to inch up to 245,000 from the 242,000 originally reported for the previous week.
On the debt ceiling deal front, U.S. House Speaker Kevin McCarthy, R-Calif., told reporters the two sides remain "far apart," with ongoing talks hitting a snag over Republicans' demand for spending cuts.
With just over a week left - including a holiday weekend - U.S. Treasury Secretary Janet Yellen reiterated her dire warning that the U.S. could have a hard time paying its bills.
Fitch Ratings placed the United States "AAA" credit on "rating watch negative," signaling downside risks to U.S. creditworthiness.
The dollar index climbed to 104.31, gaining about 0.4%.
Against the Euro, the dollar firmed to 1.0724 from 1.0752. The dollar is trading at 1.2320 against Pound Sterling, gaining from 1.2365.
Against the Japanese currency, the dollar is stronger, fetching 140.05 yen a unit. The dollar is up against the Aussie at 0.6505, and up marginally against Swiss franc, fetching CHF 0.9059. The dollar has firmed against the Loonie to CHF 1.3644 from C$ 1.3594.
For comments and feedback contact: editorial@rttnews.com
Forex News