Dollar pares initial losses on rise in yields and upbeat US GDP

The greenback pared intra-day losses on rise in US yields as well as upbeat US GDP data after falling to fresh multi-week lows in Asia due to the Federal Reserve's dovish hold on Wednesday ending Thursday slightly higher against majority of its peers.  
  
Reuters reported U.S. economic growth accelerated in the first quarter, fueled by massive government aid to households and businesses, charting the course for what is expected will be the strongest performance this year in nearly four decades.     Gross domestic product increased at a 6.4% annualized rate last quarter, the Commerce Department said on Thursday in its advance estimate of GDP for the first three months of the year. That was the second-fastest GDP growth pace since the third quarter of 2003 and followed a 4.3% rate in the fourth quarter.     Economists polled by Reuters had forecast GDP growth increasing at a 6.1% pace in the January-March period.  
  
Versus the Japanese yen, the dollar initially rose from 108.44 in Asia to 109.06 in Europe on cross-selling in jpy before retreating to 108.84. The pair then rallied to a 15-day high of 109.22 in early New York morning due to rise in U.S. Treasury yields together with the release of upbeat U.S. GDP data. Price then weakened to 108.81 on profit-taking and cross-buying in jpy.  
  
Although the single currency extended its recent ascent and rose to a fresh 8-month high of 1.2149 in Asian morning on broad-based usd's weakness, price erased intra-day gains and fell to 1.2112 in European morning. The pair then dropped to session lows of 1.2103 in early New York morning due to usd's broad-based strength before recovering to 1.2129.  
  
The British pound extended Wednesday's rally and gained to an 8-day high of 1.3976 in Asian morning on usd's continued weakness. However, cable then retreated in tandem with euro to 1.3932 in Europe before recovering to 1.3966 at New York open but only to weaken to 1.3935 on rebound in the greenback together with cross-selling in sterling.  
  
Data to be released on Friday :  
  
Japan Tokyo CPI, unemployment rate, industrial output, Jibun bank manufacturing PMI, construction orders, housing starts, consumer confidence, China NBS manufacturing PMI, NBS non-manufacturing PMI, Australia PPI, France GDP, CPI, producer prices, U.K. nationwide house price, Swiss retail sales, KOF indicators, Italy unemployment rate, GDP, CPI, Germany GDP, EU HICP, GDP, unemployment rate, U.S. personal income, personal spending, PCE price index, employment wages, employment costs, Chicago PMI, U. Mich. sentiment, Canada GDP, producer prices, budget balance.