WASHINGTON (dpa-AFX) - The U.S. dollar climbed to a new 52-week high on Thursday with the latest set of economic data reducing the prospects of aggressive rate cuts by the Federal Reserve. Hawkish comments from Fed Chair Jerome Powell contributed as well to the dollar's rise.
In economic news today, data from the Labor Department said initial jobless claims slipped to 217,000 in the week ended November 9th, a decrease of 4,000 from the previous week's unrevised level of 221,000. Economists had expected jobless claims to inch up to 223,000.
A separate report from the Labor Department showed its producer price index for final demand rose by 0.2% in October following a revised 0.1% uptick in September. Economists had expected producer prices to rise by 0.2% compared to the unchanged reading originally reported for the previous month.
Meanwhile, the report said the annual rate of growth by producer prices accelerated to 2.4% in October from an upwardly revised 1.9% in September. The annual rate of producer price growth was expected to accelerate to 2.3% from the 1.8% originally reported for the previous month.
Fed Chair Jerome Powell said in remarks on Thursday that the central bank does not 'need to be in a hurry to lower rates' due to the strength of the economy.
'The economy is not sending any signals that we need to be in a hurry to lower rates,' Powell said during an event in Dallas, Texas. 'The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.'
Powell's comments on the outlook for rates came as he described the U.S. economy's performance as 'remarkably good,' noting the labor market remains in solid condition but is no longer a source of significant inflationary pressures.
The dollar index, which surged to 107.06 in the European session, dropped to 106.38 a little before noon, but climbed to 106.95 later on, gaining nearly 0.5%.
Against the Euro, the dollar strengthened to 1.0530 from 1.0565. Against Pound Sterling, the dollar firmed to 1.2664 from 1.2709.
The dollar gained against the Japanese currency, rising to 156.32 yen a unit, up from previous close of 155.49 yen. Against the Aussie, the dollar strengthened to 0.6455.
The Swiss franc weakened to CHF 0.8904 against the dollar, while the Loonie was down at 1.4062 a unit of the U.S. currency.
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