Daily Afternoon Report 11/02/2016
The dollar trimmed losses against the other major currencies today, after the release of upbeat U.S. jobless claims data although comments by Federal Reserve Chair Janet Yellen indicating that further rate hikes could be delayed continued to weigh.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 6 decreased by 16,000 to 269,000 from the previous week’s total of 285,000. Analysts expected jobless claims to fall by 4,000 to 281,000 last week.
In testimony before a congressional committee on Wednesday, Yellen said there are good reasons to believe the U.S. will stay on a path of moderate growth that will allow the Fed to pursue "gradual" adjustments to monetary policy.
But she also acknowledged risks facing the U.S. economy from tightening financial conditions driven by falling stock prices and uncertainty over China.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.09% at 95.77, after hitting a four-month low of 95.50 earlier in the day.