U.S. Dollar Rallies Amid Hotter-than-expected PPI Data

(RTTNews) - The U.S. dollar firmed against its major counterparts in the European session on Thursday, following the release of stronger-than-expected producer price index report for January.

Data from the Labor Department showed that producer prices advanced more than expected in January.

The Labor Department said its producer price index for final demand climbed by 0.7 percent in January after edging down by a revised 0.2 percent in December.

Economists had expected producer prices to increase by 0.4 percent compared to the 0.5 percent drop originally reported for the previous month.

The report may encourage the Federal Reserve to keep rates higher for longer.

Separate data showed that first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended February 11.

The report said initial jobless claims slipped to 194,000, a decrease of 1,000 from the previous week's revised level of 195,000.

Economists had expected jobless claims to inch up to 200,000 from the 196,000 originally reported for the previous week.

The greenback climbed to 134.35 against the yen and 0.9262 against the franc, from its early lows of 133.60 and 0.9214, respectively. The next possible resistance for the currency is seen around 139.00 against the yen and 0.94 against the franc.

The greenback was trading at 0.6872 against the aussie and 0.6257 against the kiwi, off its early lows of 0.6936 and 0.6309, respectively. The greenback may locate resistance around 0.66 against the aussie and 0.605 against the kiwi.

The greenback touched 1.3441 against the loonie, its strongest level since February 10. Should the greenback strengthens further, 1.37 is found as its resistance level.

The greenback was up against the euro, at 1.0670. On the upside, 1.035 is possibly seen as its next resistance level.

The greenback appreciated to 1.1979 against the pound, setting a 9-day high. The greenback is seen finding resistance around the 1.16 mark.