Dollar Mostly Subdued Against Major Counterparts Amid Rate Cut Bets

(RTTNews) - The U.S. dollar turned in a weak performance on Thursday, weighed down by dovish remarks from Federal Reserve Governor Waller that suggested.

Waller said in an interview with CNBC that inflation is getting closer to the target and three or four cuts are likely this year. "If we continue getting numbers like this, it is reasonable to think rate cuts could happen in the first half of the year," he said.

Waller added that a reduction in March cannot be ruled out, suggesting that more cuts could happen if inflation continues to ease.

Traders also digested a slew of economic data. Data from the Labor Department said initial jobless claims climbed to 217,000 in the week ended January 11th, an increase of 14,000 from the previous week's revised level of 203,000.

Economists had expected jobless claims to rise to 210,000 from the 201,000 originally reported for the previous week.

A report from the Commerce Department said retail sales rose by 0.4% in December after advancing by an upwardly revised 0.8% in November. Economists had expected retail sales to climb by 0.6% compared to the 0.7% increase originally reported for the previous month.

A report from the Labor Department said import prices inched up by 0.1% in December, matching the upticks seen in November and October as well as expectations. Meanwhile, the report said export prices climbed by 0.3% in December after coming in unchanged in November. Export prices were expected to rise by 0.2%.

The Philly Fed said its diffusion index for current general activity skyrocketed to a positive 44.3 in January from a negative 10.9 in December, with a positive reading indicating growth. Economists had expected the index to jump to a negative 5.0.

The dollar index dropped to 108.83 before recovering to 108.95, but still remained weak, losing about 0.13%.

Against the Euro, the dollar weakened to 1.0305 from 1.0292. Against Pound Sterling, the dollar gained marginally at 1.2240.

The dollar weakened against the Japanese currency to 155.14 yen, from Wednesday's close of 156.47 yen. The dollar gained marginally against the Aussie at 0.6213.

The Swiss franc firmed against the dollar to CHF 0.9056 from CHF 0.9107. Against the Loonie, the dollar strengthened to fetch C$ 1.4395 a unit, up from previous close of C$ 1.4340.