The greenback traded mixed on Thursday as investors booked profits from dollar's recent winning streak and as U.S. Treasury yields dropped in New York session on concern that inflation is rising.
Reuters reported initial claims for state unemployment benefits totaled a seasonally adjusted 473,000 for the week ended May 8, compared to 507,000 in the prior week, the Labor Department said on Thursday. Economists polled by Reuters had forecast 490,000 applications for the latest week. In another report on Thursday, the Labor Department said its producer price index for final demand rose 0.6% in April after surging 1.0% in March. In the 12 months through April, the PPI shot up 6.2%. That was the biggest year-on-year rise since the series was revamped in 2010 and followed a 4.2% jump in March. The year-on-year PPI was boosted as last spring's weak readings dropped out of the calculation.
Versus the Japanese yen, despite briefly rising to a 1-month high at 109.78 at Asian open, dollar then retreated to 109.49 before staging a rebound to 109.74. However, the pair later weakened to 109.41 near New York close on weakness in U.S. Treasury yields.
Although the single currency traded sideways in Asia and briefly gained to session highs of 1.2107 in European morning, price erased intra-day gains and swiftly fell to 1.2052 due to cross-selling in euro. The pair then recovered to 1.2099 in New York morning but weakened again to 1.2063.
The British pound initially rebounded to 1.4078 in Asian morning before falling to session lows of 1.4006 in Europe due to cross-selling in sterling. However, price then pared intra-day losses and recovered to 1.4062 in New York but weakened again to 1.4017.
Data to be released on Friday:
New Zealand manufacturing PMI, Australia consumer inflation experience, U.S. import prices, export prices, retail sales, industrial production, capacity utilization, manufacturing output, business inventories, U. Mich. sentiment, Canada manufacturing sales, wholesales trade.
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