Dollar extends Wednesday's surge following surprise Fed's hawkish til

The greenback remained on the front foot and ended sharply higher against majority of its peers on Thursday, except versus safe-haven Japanese yen after Fed announced the central bank would raise interest rates sooner than expected on Wednesday.  
  
On the data front, Reuters reported initial claims for state unemployment benefits rose 37,000 a seasonally adjusted 412,000 for the week ended June 12, the Labor Department said on Thursday. That was the first increase since late April. Economists polled by Reuters had forecast 359,000 applications for the latest week.   
  
Versus the Japanese yen, although dollar extended Wednesday's rally on Fed's hawkish hold to a 2-1/2 month high of 110.82 at Asian open, price met renewed selling and fell to 110.55 in European morning. The pair then ratcheted lower to session lows of 110.17 in New York due to weakness in U.S. Treasury yields before trading sideways.  
  
Although the single currency recovered from 1.1985 to 1.2006 in Asia, renewed selling interest emerged and knocked price down to a 2-month low of 1.1893 in New York on continued usd's strength following Fed's hawkish hold on Wednesday before rebounding to 1.1922 due to short-covering.  
  
The British pound fell briefly below Wednesday's 1.3983 low to 1.3972 at Asian open. Despite recovering to 1.4009, cable later dropped to a 5-week low of 1.3896 in New York on usd's continued strength before rebounding to 1.3934 due to short-covering as well as cross-buying in sterling.  
  
Data to be released on Friday :  
  
Japan nationwide core CPI, nationwide CPI, Bank of Japan interest rate decision, Germany producer prices, UK retail sales, retail sales ex-fuel, EU current account, and Canada new housing price index.