US dollar fell on Thursday as the US stock markets rallied in reaction to better than expected US economic data. This reduced the appeal of the US dollar as a safe haven and investors shifted their focus towards the equities. US pending home sales improved in December as compared to November while manufacturing activity in Chicago also boosted surprising everyone. However on negative side the US jobless claims increased to 381,000 in current week.
Economists at RDQ Economics commented, “The evidence continues to grow that economic growth is on an upswing as 2011 draws to a close.”
In reaction to weaker greenback the single currency also found support and recovered from its lowest in 11 years. The euro gained to 1.2949 versus the US dollar on Thursday as compared to 1.2938 in Wednesday’s North American trading session. The euro fell versus the Japanese Yen to 100.54 on Thursday as compared to 100.83 on Wednesday. The single currency has fell 3.3 percent versus the greenback in the current year while is down 7.4 percent against the Japanese Yen.
The dollar index DXY which measures the greenback’s performance against its six major counterparts fell to 80.425 on Thursday as compared to 80.526 on Wednesday’s North American trading session. The dollar index has appreciated 1.8 percent in the current year.
Among other currencies, the British Pound declined to 1.5412 versus the US dollar as compared to 1.5455 on late Wednesday. The Pound Sterling has declined by 1.3 percent in the current year.
Against the Japanese yen, the greenback fell to 77.63 on Thursday as compared to 77.95 on Wednesday.
