WASHINGTON (dpa-AFX) - The U.S. dollar pared early gains and remained subdued in the New York session on Thursday after data showing a slower than estimated growth in the first quarter, and an increase in jobless claims eased concerns about the outlook for interest rates.
Revised data released by the Commerce Department on Thursday showed U.S. economic growth slowed by more than previously estimated in the first quarter of 2024. The report said gross domestic product climbed by 1.3% in the first quarter compared to the previously reported 1.6% jump.
First-time claims for U.S. unemployment benefits crept modestly higher in the week ended May 25th, rising to 219,000, an increase of 3,000 from the previous week's revised level of 216,000, data from the Labor Department showed. Economists had expected jobless claims to inch up to 218,000 from the 215,000 originally reported for the previous week.
Today's data has raised expectations the Fed will likely cut interest rates in November.
The Federal Reserve's preferred inflation measure will be released on Friday and price increases as measured by the personal consumption expenditures index are expected to be on par with March figures.
The inflation data could have a significant impact on the outlook for interest rates ahead of the Fed's next monetary policy meeting on June 11-12.
The dollar index, which climbed to 105.18 in the European session, dropped to 104.63 a little before noon, and recovered to 104.77 later in the day, netting a gain of about 0.15%.
Against the Euro, the dollar weakened to 1.0830 from 1.0803. The dollar was down against Pound Sterling at 1.2729. Against the Japanese currency, the dollar dropped to 156.87 yen.
The dollar weakened to 0.6631 against the Aussie. Against Swiss franc, the dollar eased to CHF 0.9035, and against the Loonie, the currency weakened to C$ 1.3685.
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