The US dollar gained on Thursday and extended its rally to 14th day which happens to be longest since 1985. US equities ended lower while Treasury yields touched reached their lowest level in reaction to week US economic data and concerns over Greece and Spain. However, there were also gossips that US Fed could go for further monetary easing after the release of weaker than expected manufacturing data. The US employment data also disappointed as the jobless claims remained unchanged at 370,000 for the week ending May 11th, 2012.
The dollar index DXY which measures the greenback’s performance against the basked of its six major counterparts jumped to 81.454 on Thursday as compared to 81.359 on Wednesday’s North American trading session.
The single currency fell to 1.2702 versus the US dollar on Thursday as compared to 1.2726 on Wednesday’s late trading hours. Analysts foresee that euro will further decline as it is backed by weak fundamentals in the light of the single currency region’s economy and political crisis. Analysts think that euro’s only notable support level has been seen at 1.2620 against the US dollar and this where it would find support again.
Among other currencies, the British Pound declined to 1.5808 against the US dollar on Thursday as compared to 1.5916 on late Wednesday. Against the Japanese yen, the greenback fell to 79.28 as compared to 80.28 on Wednesday.
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