Dollar Gains Against Major Counterparts

(RTTNews) - The U.S. dollar climbed higher and scored gains over its major counterparts on Thursday, riding on the minutes of the Federal Reserve's July meeting that showed the central bank will continue raising rates in the coming months.

The minutes showed that rates would remain higher for longer time in order to bring inflation under control.

In economic releases today, the Labor Department's data showed initial jobless claims in the U.S. edged down to 250,000 in the week ended August 13th, a decrease of 2,000 from the previous week's revised level of 252,000. Economists had expected jobless claims to inch up to 265,000 from the 262,000 originally reported for the previous week.

The Philly Fed said its diffusion index for current activity jumped to a positive 6.2 in August from a negative 12.3 in July, with a positive reading indicating growth. Economists had expected the index to rebound to a negative 5.0.

Meanwhile, the National Association of Realtors' report showed existing home sales plunged by 5.9% to an annual rate of 4.81 million in July after tumbling by 5.5% to a revised rate of 5.11 million in June.

Economists had expected existing home sales to slump by 4.5% to a rate of 4.89 million from the 5.12 million originally reported for the previous month.

A separate report released by the Conference Board said its leading economic index fell by 0.4% in July following a revised 0.7% decrease in June.

The dollar index surged to 107.56 before retreating slightly to 107.47, netting a gain of about 0.84%.

Against the Euro, the dollar firmed to $1.0091 from $1.1079. Data from Eurostat showed annual inflation rate in the Euro Area came in at 8.9% in July of 2022, compared to 8.6% in June and 2.2% a year earlier.

Annual core inflation rate in the Euro Area increased to a record high of 4% in July of 2022 from 3.7% in June, in line with preliminary estimates.

The dollar is stronger by nearly 1% against Pound Sterling at $1.1933, firming from $1.2049.

Against the Japanese currency, the dollar is fetching 135.89 yen, as against 135.06 yen on Wednesday.

The dollar is firmer against the Aussie as 0.6918. The Swiss franc is weaker at 0.9563 a dollar, easing from 0.9515.

The Loonie has weakened to 1.2942 a dollar from 1.2914. Switzerland's exports declined for the first time in four months in July, data from the Federal Customs Administration showed.

Exports fell by a real 2.9% month-on-month in July, reversing a 1% increase in June. Imports decreased at a faster pace of 3.4% over the month, following a 1.2% drop in June.