Dollar Rises On Economic Data, Debt Ceiling Deal Hopes
(RTTNews) - The U.S. dollar firmed against its major rivals on Thursday, amid optimism about the progress in the debt ceiling talks, and on data showing a bigger than expected drop in U.S. jobless claims last week.
Following a meeting earlier in the week, President Joe Biden and House Speaker Kevin McCarthy, R-Calif., both expressed optimism a deal will be reached.
Data from the Labor Department showed that first-time claims for U.S. unemployment benefits fell more than expected in the week ended May 13.
The report said initial jobless claims slid to 242,000, a decrease of 22,000 from the previous week's unrevised level of 264,000. Economists had expected jobless claims to dip to 254,000.
A separate report released by the Federal Reserve Bank of Philadelphia showed a continued contraction in regional manufacturing in the month of May, although the pace of contraction slowed by more than expected.
The Philly Fed said its diffusion index for current activity surged to a negative 10.4 in May from a negative 31.3 in April.
The dollar index climbed to 103.62 before paring some gains. It was last seen at 103.51, up more than 0.6% from the previous close.
Against the Euro, the dollar strengthened to 1.0775 from 1.0840, and is up against Pound Sterling at 1.2408, more than 0.6% up from the previous close.
Against the Japanese currency, the dollar is up sharply, fetching 138.69 yen a unit. The dollar is stronger against the Aussie at 0.6625, and up against Swiss franc at CHF 0.9050.
The dollar has firmed against the Loonie as well. Despite giving up some gains, the dollar is up 0.33%, fetching C$ 1.3501.
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