Dollar bounces after improving jobs and housing data

NEW YORK (Reuters) – The dollar gained against a basket of currencies on Thursday, erasing earlier losses, boosted by better jobs and housing data, and as US Treasury yields rose.

Data showed the number of Americans filing new jobless claims fell to a 19-month low last week, indicating a tight labor market, although a shortage of workers may keep pace moderate hiring in October.

US home sales also hit an eight-month high in September, but rising prices, as supply remains tight, is excluding first-time homebuyers from the housing market.

“The dollar faded early in the session, but then found its way onto improved unemployment claims and better data on existing home sales,” said Ronald Simpson, managing director of currency analysis worldwide at Action Economics.

The dollar index hit 93.76, up 0.17% on the day, after falling to 93.49. It had hit a one-year high of 94.56 last week on rising bets that the Federal Reserve will have to raise interest rates sooner than expected to ease mounting pricing pressures.

Fed Governor Christopher Waller said Thursday that the US central bank is expected to let its $ 8 trillion balance sheet shrink over the next two years.

The dollar was also supported as benchmark 10-year US Treasury yields hit 1.683%, the highest since May 13.

Risk sensitive currencies, including the Australian dollar, continued to weaken although a rally in stocks later in the day showed improving risk sentiment. [.N]

The Australian dollar, which is a proxy for risk appetite, fell 0.67% to $ 0.7465 after hitting $ 0.7547 overnight, the highest since July 6.

Commerzbank’s head of FICC technical analysis Karen Jones said in a report Thursday that the Australian currency is likely to see profit taking as it hits its 55-week moving average of $ 0.7516.

The New Zealand dollar, which has been inflating since the country recorded the highest rate of inflation in more than a decade on Monday, also fell 0.67% to $ 0.77153, after hitting 0 , $ 7,219 overnight, the highest since June 8.

The greenback plunged 0.34% against the safe haven yen to 113.97. It hit a four-year high of 114.67 against the Japanese currency on Wednesday.

The British pound slipped 0.29% to $ 1.3785 while the euro lost 0.23% to $ 1.1623.

Bitcoin was the last at $ 65,193, after hitting a record high of $ 67,017 on Wednesday. Demand for the cryptocurrency increased after the launch of the first US bitcoin exchange-traded futures fund.

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Price of currency offers at 3:37 p.m. (1937 GMT)

Description RIC Last closure US Pct Change YTD Pct High Bid Low Bid

Previous modification

Session

Dollar index 93.7590 93.6140 + 0.17% 4.199% +93.7850 +93.4940

Euro / Dollar $ 1.1623 $ 1.1650 -0.23% -4.87% +1.1667 $ +1.1623

Dollar / Yen 113.9650 114.2600 -0.34% + 10.25% +114.4100 +113.6700

Euro / Yen 132.46 133.20 -0.56% + 4.36% +133.3600 +132.2700

Dollar / Switzerland 0.9182 0.9189 -0.08% + 3.79% +0.9206 +0.9171

Pound sterling / dollar $ 1.3785 $ 1.3823 -0.29% + 0.89% +1.3833 $ +1.3776

Dollar / Canadian 1.2370 1.2316 + 0.45% -2.84% +1.2383 +1.2289

Aussie / Dollar $ 0.7465 $ 0.7516 -0.67% -2.95% + $ 0.7546 + $ 0.7459

Euro / Switzerland 1.0673 1.0706 -0.31% -1.24% +1.0718 +1.0673

Euro / Sterling 0.8429 0.8425 + 0.05% -5.68% +0.8443 +0.8423

NZ $ 0.7153 $ 0.7201 -0.67% -0.40% + $ 0.7218 + $ 0.7142

Dollar / Dollar

Dollar / Norway 8.3640 8.3055 + 0.59% -2.71% + 8.3675 +8.3200

Euro / Norway 9.7233 9.6795 + 0.45% -7.13% +9.7325 +9.6625

Dollar / Sweden 8.6104 8.5796 + 0.03% + 5.05% +8.6126 +8.5744

Euro / Sweden 10.0081 10.0052 + 0.03% -0.68% +10.0209 +9.9959