The greenback ended lower on Thursday as the US Federal Reserve’s officials showed their concerns over the US economic growth indicating implementation of another round of quantitative easing. Senior currency strategist, Eric Viloria commented, “The comments weighed on the buck somewhat but both Yellen and Dudley are known doves and the statements did not represent a shift in policy stance but served as a reminder that the economy remains quite fragile,” he further added, “This indicates that markets expect the Fed to maintain its accommodation and keep additional easing options on the table.”
The ICE dollar index DXY which tracks the US dollar’s performance versus its six major rival currencies declined to 79.269 on Thursday as compared to 79.791 on Wednesday’s North American trading session.
The dollar was also under pressure in reaction to the latest jobless claims data, according to which jobless claims surprisingly increased to 380,000 in the last week.
The euro surged to 1.3199 versus the greenback on Thursday as compared to 1.3102 on Wednesday’s late trading hours. The single currency also gained 0.3 percent against the Japanese yen to 106.58.
Among other currencies, the Australian dollar performed in reaction to positive economic data. Australia unemployment rate remained flat at 5.2 percent for the month of February which made the Australian unit to gain to 1.0442 versus the US dollar as compared to 1.0306 on late Wednesday. The British Pound gained to 1.5973 versus the US dollar as compared to 1.5906. The greenback fell to 80.77 against the Japanese yen as compare to 80.94.
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