U.S. Dollar Falls Amid Higher-than-expected Jobless Claims

(RTTNews) - The U.S. dollar dropped against its major counterparts in the New York session on Thursday, as first-time jobless claims rose more than expected last week, signalling a slowdown in the labor market.

Data from the Labor Department showed that initial jobless claims crept up to 245,000, an increase of 5,000 from the previous week's revised level of 240,000.

Economists had expected jobless claims to inch up to 240,000 from the 239,000 originally reported for the previous week.

Philadelphia-area manufacturing activity unexpectedly contracted at an accelerated rate in the month of April, according to a report released by the Federal Reserve Bank of Philadelphia.

The Philly Fed said its diffusion index for current activity slumped to a negative 31.3 in April from a negative 23.2 in March, with a negative reading indicating a contraction. Economists had expected the index rise to a negative 19.2.

The greenback dropped to 134.17 against the yen, 1.0984 against the euro and 1.2460 against the pound, from its early highs of 134.97, 1.0933 and 1.2404, respectively. The next possible support for the greenback is seen around 129.00 against the yen, 1.12 against the euro and 1.27 against the pound.

The greenback retreated to 0.6193 against the kiwi, off an early multi-week high of 0.6149. The greenback is seen finding support around the 0.63 level.

The greenback was down against the franc, at a 3-day low of 0.8922. If the greenback drops further, it may find support around the 0.88 area.

The greenback touched 0.6751 against the aussie, its lowest level since April 14. The greenback may face support around the 0.69 level.

In contrast, the greenback climbed against the loonie, hitting an 8-day high of 1.3489. The greenback is likely to face resistance near the 1.32 level.