Dollar Turns In Mixed Performance Ahead Of Jobs Data

(RTTNews) - The U.S. dollar recovered from early losses on Thursday after fairly encouraging economic data dashed hopes of any aggressive interest rate cut by the Federal Reserve next week, but gave up gains as the day progressed with investors awaiting non-farm payroll data due on Friday, and the presidential election next week.

In economic releases today, the Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2% in September and the annual rate of growth slowed to 2.1%, which both matched expectations.

However, the annual rate of growth by the core PCE price index, which excludes food and energy prices, was unchanged from the previous month at 2.7%. Economists had expected the pace of growth to slow to 2.6%.

The slightly faster than expected core price growth may have added to recent concerns the Federal Reserve will lower interest rates more slowly than hoped.

A report from the Labor Department showed initial jobless claims unexpectedly fell to a five-month low last week.

MNI Indicators released a report on Thursday showing its reading on Chicago-area business activity unexpectedly tumbled to a five-month low in October. The report said MNI Indicators' Chicago business barometer slumped to 41.6 in October from 46.6 in September, with a reading below 50 indicating contraction. Economists had expected the business barometer to inch up to 47.0.

The dollar index, which climbed to 104.20 around mid morning, dropped to 103.90, losing about 0.1% from the previous close.

Against the Euro, the dollar weakened to 1.0884 from 1.0858. The dollar firmed to 1.2898 against Pound Sterling, gaining from 1.2961.

Against the Japanese currency, the dollar weakened to 152.08 yen a unit, from 153.42 yen, after the Bank of Japan kept its key rate unchanged. The dollar weakened a bit against the Aussie at 0.6580.

The Swiss franc strengthened to 0.8634 against the U.S. dollar, firming from 0.8666, while the Loonie was weak at 1.3925 a unit of greenback.