WASHINGTON (dpa-AFX) - The U.S. dollar climbed higher on Thursday, gaining some ground against most of its major counterparts, after weekly jobless claims data indicated continued strength in the labor market.
A report from the Philadelphia Federal Reserve showed a considerable acceleration in the pace of growth in regional manufacturing activity in the month of April.
The Philly Fed said its diffusion index for current general activity jumped to 15.5 in April from 3.2 in March, with a positive reading indicating growth. Economists had expected the index to edge down to 1.5.
Notably, the report also said the prices paid index surged to 23.0 in April from 3.7 in May, reaching its highest reading since December 2023.
Quincy Krosby, Chief Global Strategist for LPL Financial, said the spike by the prices paid index supports 'the Fed's concerns regarding inflationary pressures stalling in its downward trajectory.'
The dollar also found support from hawkish comments from New York Fed President Williams and Atlanta Fed President Bostic. Both the officials reiterated that the Fed is in no hurry to cut interest rates.
The Labor Department's report showed initial jobless claims came in at 212,000 for the week ended April 13th, unchanged from the previous week's revised level. Economists had expected jobless claims to rise to 215,000 from the 211,000 originally reported for the previous week.
Meanwhile, the National Association of Realtors released a report showing a sharp pullback by existing home sales in the U.S. in the month March.
NAR said existing home sales plunged by 4.3% to an annual rate of 4.19 million in March after surging by 9.5% to a rate of 4.38 million in February. Economists had expected existing home sales to slump to a rate of 4.20 million.
The dollar index climbed to 106.18, recovering well from a low of 105.74 touched in the Asian session.
Against the Euro, the dollar firmed to 1.0644 from 1.0674. Against Pound Sterling, the dollar strengthened to 1.2434, and against the Japanese currency, it gained to 154.64 yen.
The dollar gained marginally against the Aussie, firming to 0.6420. Against Swiss franc, the dollar climbed higher, fetching CHF 0.9125 a unit. The Canadian dollar was up marginally against the U.S. dollar, edging up to 1.3771.
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