NEW YORK :The dollar edged lower from a one-year high on Thursday in choppy trading, pressured a little bit by a rise in U.S. weekly jobless claims, with investors also consolidating gains after a steep rise the last few sessions.
The greenback overall has been supported by the spike in U.S. Treasury yields amid expectations the Federal Reserve will taper its monetary stimulus beginning in November even as global growth slows.
Thursday's economic data, though, dented some of the dollar's strength.
U.S. initial jobless claims rose for a third straight week to 362,000 for the period ending Sept. 25, data showed. Economists polled by Reuters had forecast 335,000 jobless applications for the latest week.
That said, another report confirmed that U.S. economic growth accelerated in the second quarter, at a 6.7per cent clip, thanks to pandemic relief money from the government, which boosted consumer spending.
"Even if the U.S. dollar falls back a bit further in the near term, we expect it to resume its recent rally in due course," Joseph Marlow, assistant economist at Capital Economics, wrote in a research note.
"Although long-term yields have risen in most major economies, U.S. bond yields have increased by more than most and, importantly, been driven in large part by higher real yields, reflecting expectations of tighter monetary policy."
The dollar index, which measures the currency against a basket of six rivals, hit 94.504, its highest since Sept. 28 last year. It was last down 0.2per cent at 94.199.
For the month, the dollar ended up 1.7per cent, its second straight monthly gain. For the third quarter, the dollar rose 2per cent.
Marc Chandler, chief market strategist at Bannockburn Forex, in a research note wrote that "a consolidative tone is evident" after the dollar's surge on Wednesday.
The dollar's recent gains came despite a political standoff in Washington over the U.S. debt ceiling that threatens to shut down much of the government.
Yields on the benchmark 10-year Treasury note stood at 1.524per cent, holding near a three-month high reached Tuesday of 1.567per cent.
The dollar hit 112.07 yen, the highest since February 2020. It was last down 0.5per cent at 111.36 yen, its biggest daily percentage fall since mid-August.
For the month of September, however, the dollar posted a 1.2per cent gain versus the yen, and a more modest 0.4per cent rise for the third quarter.
The euro was down 0.1per cent at US$1.1586, after earlier hitting US$1.1563,its lowest since July 2020.
Europe's single currency was down 1.9per cent against the dollar for the month and 2.2per cent weaker for the third quarter.
The risk-sensitive Australian dollar firmed 0.8per cent to USUS$0.7232, after plummeting 0.9per cent overnight, as iron ore prices rallied ahead of the Golden Week holiday in Australia's top trading destination China.
A slight improvement in overall risk sentiment after days of gloom was seen in the cryptocurrency markets, as bitcoin rose 5.7per centper cent to US$43,929 and ether bounced 6.2per cent to US$3,028. Both coins are down between 20per cent and 27per cent from their September peaks.
Currency bid prices at 3:20PM (1920 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Dollar index 94.1870 94.3440 -0.15per cent 4.674per cent +94.5040 +94.1090
Euro/Dollar US$1.1588 US$1.1598 -0.09per cent -5.16per cent +US$1.1610 +US$1.1563
Dollar/Yen 111.3700 111.9750 -0.54per cent +7.79per cent +112.0750 +111.3200
Euro/Yen 129.04 129.82 -0.60per cent +1.67per cent +129.9500 +128.8100
Dollar/Swiss 0.9323 0.9346 -0.22per cent +5.41per cent +0.9368 +0.9322
Sterling/Dollar US$1.3482 US$1.3427 +0.42per cent -1.31per cent +US$1.3517 +US$1.3417
Dollar/Canadian 1.2656 1.2753 -0.78per cent -0.64per cent +1.2763 +1.2631
Aussie/Dollar US$0.7235 US$0.7174 +0.86per cent -5.94per cent +US$0.7257 +US$0.7176
Euro/Swiss 1.0803 1.0839 -0.33per cent -0.04per cent +1.0847 +1.0802
Euro/Sterling 0.8594 0.8636 -0.49per cent -3.84per cent +0.8643 +0.8578
NZ US$0.6912 US$0.6866 +0.71per cent -3.72per cent +US$0.6921 +US$0.6860
Dollar/Norway 8.7315 8.7860 -0.55per cent +1.76per cent +8.8295 +8.7140
Euro/Norway 10.1196 10.1740 -0.53per cent -3.32per cent +10.2315 +10.1054
Dollar/Sweden 8.7513 8.8067 -0.72per cent +6.77per cent +8.8118 +8.7383
Euro/Sweden 10.1406 10.2141 -0.72per cent +0.64per cent +10.2167 +10.1320
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Ritvik Carvalho in London; Editing by William Maclean, Hugh Lawson and Jonathan Oatis)