Dollar Gains Against Most Of Its Rivals On Rate Hike Bets

(RTTNews) - The U.S. dollar climbed higher against most of its major rivals on Thursday after data showing an unexpectedly bigger jump in the nation's economic activity in the third quarter raised prospects of the Federal Reserve continuing its interest rate hikes in the coming months.

Data released by the Commerce Department showed the surge in real gross domestic product in the third quarter was upwardly revised to 3.2% from the previously reported 2.9%. Economists had expected the pace of GDP growth to be unrevised.

The stronger than previously estimated growth in the third quarter came after GDP slumped by 1.6% in the first quarter and fell by 0.6% in the second quarter.

The Conference Board released a report on Thursday showing a continued slump by its reading on leading U.S. economic indicators in the month of November.

The report said the leading economic index tumbled by 1% in November after sliding by a revised 0.9% in October. Economists had expected the leading economic index to decrease by 0.5% compared to the 0.8% drop originally reported for the previous month.

Data released by the Labor Department showed initial jobless claims crept up to 216,000 in the week ended December 17th, an increase of 2,000 from the previous week's revised level of 214,000.

Economists had expected jobless claims to rise to 222,000 from the 211,000 originally reported for the previous week.

Traders looked ahead to tomorrow's report on personal income and spending, which includes a reading on inflation said to be preferred by the Fed.

The Fed Chair Jerome Powell said last week that the central bank will require "substantially more evidence" inflation is on a sustained downward trend before halting its interest rate hikes.

The dollar index climbed to 104.60 before easing to 104.41, but still remained positive, netting a gain of about 0.25%.

Against the Euro, the dollar was up slightly at 1.0598.

The dollar firmed to 1.2041 against Pound Sterling, gaining nearly 0.4%.

Against the Japanese currency, the dollar was slightly weak at 132.34 yen, compared with Wednesday's close of 132.46 yen a dollar.

Against the Aussie, the dollar firmed to 0.6671, and against Swiss franc, it strengthened to fetch CHF 0.9310 per unit, compared with CHF 0.9266 yesterday.

The dollar strengthened against the Loonie as well, firming to C$1.3650 from C$1.3614.