LOS ANGELES (MarketWatch) � The dollar rose against most major rivals Thursday, with gains accelerating after remarks by a Federal Reserve official about the possible future of monetary policy.
Meanwhile, the euro hit a six-week low after manufacturing data signaled the euro zone is facing the prospect of remaining in recession in the first quarter.
/quotes/zigman/1652083 DXY 81.46, +0.10, +0.12%
The euro EURUSD �, which had traded above $1.37 early last week, on Thursday dropped below the $1.32 level for the first time since Jan. 10. It traded at $1.3187 late Thursday, down from $1.3256 in North American trade on Wednesday.
The ICE dollar index DXY �, a measure of the greenback�s moves against a basket of six major currencies, rose to 81.377 from 81.074 late Wednesday, picking up steam after St. Louis Federal Reserve Bank President James Bullard said in an interview with Bloomberg TV that the Fed could taper the pace of, rather than abruptly stop, its $85 billion per-month asset purchases if the economy continues to improve this year.
The WSJ dollar index XX:BUXX , a rival gauge that captures the greenback�s moves against a slightly wider basket of currencies, rose to 72.49 from 72.32 on Wednesday.
In a speech Thursday, Bullard, a voting member on the Fed�s interest-rate committee, said an interest-rate increase could come by June 2014 as the unemployment rate could fall below 6.5%. That�s the threshold the Fed has set in order to consider a rate hike.
Bullard�s remarks came a day after minutes from the Federal Reserve�s meeting in January indicated many policy makers are worried about the costs and risks arising from its bond-buying program. Officials will consider changes at the Fed meeting in March. Read previous story on Fed's 'unease' over easing policy.
The dollar had pared gains earlier Thursday after a Federal Reserve of Philadelphia report showed that manufacturing activity in the mid-Atlantic area unexpectedly fell this month. Analysts had expected a rise to a reading of 1.6. Read more on manufacturing data.
INVESTING� Bear correction or bull capitulation?
�'Death cross' isn't gold's only problem
� Icahn's stock picks for 2013
� How Berlusconi could crash the markets
� More markets commentary in Trading Deck �
/conga/story/misc/investing.html250568
The survey�s negative reading indicates that a larger percentage of respondents said there was a decrease in the level of general business activity than the percentage who said there was an increase. There were declines in overall activity and new orders, but a slight gain in shipments, according to the Philly Fed.
In a separate survey, Markit said its manufacturing activity gauge for the U.S. showed a slower expansion this month because of weaker new orders and employment. Read about the manufacturing reports.
Against the Japanese yen, the greenback USDJPY fetched 93.11 yen, compared to �93.86 late Wednesday, but came off session lows.
Other U.S. economic data released Thursday were mixed. Weekly jobless claims rose sharply to 362,000, but were still at a level that suggests slow and steady improvement in the labor market. Read more on claims.
A real-estate industry report for January found home sales edged up and inventory shrank, while the Conference Board�s survey of leading indicators signaled a slow pace of near-term economic growth. Read coverage of Thursday's economic data.
No comments:
Post a Comment