Forexpros – The U.S. dollar turned higher against its major counterparts on Thursday, as safe haven demand remained supported amid concerns over high Spanish borrowing costs and after the release of U.S. data on initial jobless claims and economic growth.
During European afternoon trade, the dollar was higher against the euro, with EUR/USD shedding 0.32% to hit 1.3273.
The U.S. Department of Labor said that the number of people who filed for unemployment assistance last week fell less-than-expected to 359,000, although remaining close to the lowest level since April 2008.
A separate report showed that the U.S. economy grew by 0.3% during the final three months of 2011, unchanged from a preliminary estimate.
The euro was hit by concerns over rising Spanish borrowing costs ahead of the government’s budget statement, amid fears that the government will fail to implement harsh austerity measures to slash the country’s deficit, in the face of public unrest and a looming recession.
Elsewhere in the euro zone, the Bank of Portugal said earlier that it now expects the economy to contract by 3.4% this year, down from a previous forecast for a 3.1% contraction. It also expects zero growth in 2013, down from a previous forecast of 0.3%.
Earlier in the day, official data showed that the number of unemployed people in Germany fell more-than-expected in March, while the country’s jobless rate dropped to a record low of 6.7%, indicating that the region’s largest economy is shrugging off the effects of the debt crisis.
The greenback was almost unchanged against the pound, with GBP/USD dipping 0.02% to hit 1.5885.
The Bank of England said earlier that U.K. mortgage approvals fell to their lowest level in more than eight months in February, falling to 48,986 down from 57,899 the previous month.
A separate report showed that U.K. house prices posted the largest monthly decline in more than two years this month.
The greenback was lower against the yen but pushed higher against the Swiss franc, with USD/JPY dropping 1.08% to hit 82.02 and USD/CHF adding 0.29% to hit 0.9079.
The yen firmed up as Japanese companies moved to repatriate overseas earnings before the end of Japan’s fiscal year on March 31.
Meanwhile, official data showed that retail sales in Japan rose more-than-expected in February, adding 3.5% after a 1.8% increase the previous month.
Elsewhere, the greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD rising 0.21% to hit 1.0005, AUD/USD shedding 0.36% to hit 1.0350 and NZD/USD retreating 0.25% to hit 0.8147.
In Canada, official data showed that raw materials price inflation fell unexpectedly in February, ticking down 0.5% after a 0.2% rise the previous month. Analysts had expected raw materials price inflation to rise 0.4% in February.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.13% to hit 79.40.
Later in the day, Fed Chairman Ben Bernanke was to speak.
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