Dollar rises on upbeat data

15:21, February 04, 2011      

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The U.S dollar rose against major currencies in late New York trading on Thursday as new economic data showed that the service sector expanded and initial jobless claims fell last week.

The Institute for Supply Management said on Thursday that its index of national non-manufacturing activity rose to 59.4 in January from 57.1 in December.

Also the Commerce Department said on Thursday that total factory orders rose 0.2 percent to a seasonally adjusted 426.8 billion dollars, contrary to forecasts for a 0.5 percent decline by economists.

The Labor Department said initial claims for state unemployment benefits dropped 42,000 to a seasonally adjusted 415,000.

Series of upbeat economic data helped to stimulate investors' confidence on U.S. economy, the dollar index was up to near 77.844 on Thursday, rebounding from a 12-week low on Wednesday.

Meanwhile, the euro was dampened by Jean-Claude Trichet's remarks on Thursday. The president of the European Central Bank said inflation expectations remain "firmly anchored" and inflationary pressures over the medium to long term "should remain contained."

His comments disappointed some investors who had expected the ECB to raise interest rate to address the inflation.

The euro fell to near 1.36 against the dollar, moving further away from a 12-week high of 1.3862 on Wednesday.

In late Thursday trading, the dollar bought 81.63 yen, keeping unchanged from late Wednesday, and the euro fell to 1.3639 dollars from 1.3798.

The British pound also fell to 1.6148 dollars from 1.6166. The dollar rose from 0.9420 to 0.9450 against Swiss francs, and also rose to 0.9902 Canadian dollars from 0.9884.

Source: Xinhua
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