Dollar falls as optimism rises in markets

Posted on Apr 23, 2011 in AllEconomic News
The U.S. dollar fell against major currencies in late New York trading on Thursday as earnings reports lifted equity markets and investors dumped dollar to seek more profitable investment.

First quarter earnings reports still provided momentum as the stock markets surged for third consecutive trading session on Thursday.

Optimism dominated the markets despite some disappointing reports. Initial claims for state unemployment benefits fell 13, 000 to a seasonally adjusted 403,000, the Labor Department said on Thursday. The number still hovered above key level of 400,000, suggesting the recovery of labor market still lacked momentum.

Meanwhile, the Philadelphia Federal Reserve Bank said its business activity index fell to 18.5 in April from 43.4 the month before, raising concerns over business activities.

The British pound boosted against the greenback, as data showed retail sales unexpectedly rose by 0.2 percent in March, beating previous estimates by analysts.

The dollar index dipped to 73.972 late Thursday, from 74.384 late Wednesday.

In late Thursday trading, the dollar bought 81.90 Japanese yen, comparing with 82.37 late Wednesday, and the euro rose to 1.4544 dollars from 1.4514.

The British pound also rose to 1.6517 dollars from 1.6407. The dollar fell from 0.8890 to 0.8854 against Swiss francs, and also fell to 0.9536 Canadian dollars from 0.9546.

via Dollar falls as optimism rises in markets – People’s Daily Online.