The U.S. dollar turned in a mixed performance against its major counterparts on Thursday.

The dollar had firmed up against rivals on Wednesday on speculation that the Federal Reserve might consider tightening its monetary policy in the foreseeable future to rein in inflation.

Data released by the Labor Department on Wednesday showed U.S. inflation rate jumped to the highest in 13 years, beating forecasts. The monthly gauge rose the most since 2009, the data showed.

Fed vice chair Richard Clarida said on Wednesday that the recent rise in prices could be temporary and it has not changed the central bank’s stance of keeping monetary policy loose.

In today’s economic releases, the Labor Department data said its producer price index for final demand rose by 0.6% in April after jumping by 1% in March. Economists had expected producer prices to increase by 0.3%.

The report also showed the annual rate of producer price growth accelerated to 6.2% in April from 4.2% in March, with prices showing the biggest annual increase since 12-month data were first calculated in November of 2010.

Meanwhile, a separate report from the Labor Department showed first-time claims for U.S. unemployment benefits fell by more than expected in the week ended May 8th, dipping to 473,000, a decrease of 34,000 from the previous week’s revised level of 507,000.

Economists had expected jobless claims to edge down to 490,000 from the 498,000 originally reported for the previous week.

The dollar index, which rose to 90.91 in the Asian session, dropped to 90.59 by mid morning, but recovered to 90.85 subsequently before paring some gains again. It was last seen at 90.72, up slightly from the previous close.

Against the Euro, the dollar weakened to $1.2080, losing marginal ground. The Pound Sterling was slightly weak, fetching $1.4050 a unit.

The Yen firmed up against the dollar, moving to 109.46 a dollar from Wednesday’s close of 109.70.

The Aussie was flat with the AUD-USD at 0.7729.

The dollar was slightly weak against Swiss franc, and firmed up against the Loonie.

The material has been provided by InstaForex Company – www.instaforex.com

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