NEW YORK (MarketWatch) — The dollar fell against rivals Thursday as investors opted for higher-yielding currencies in light of better U.S. data and a recent retrenchment in U.S. benchmark-bond yields.
The dollar index , which measures the currency against a basket of six rivals, fell to 79.551 from 79.788 late Wednesday. The euro rose to $1.3286 from $1.3219 Wednesday.
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“The dollar continued to weaken...as it typically does in more favorable economic times,” said Andrew Wilkinson, senior market analyst at Interactive Brokers in a note early Thursday. “A recovery for the MSCI World Index of stocks to above pre-Lehman Brothers bankruptcy level helped further boost appetite for Asian currencies offering higher-yielding alternatives to the dollar.“
Thursday’s moves also follow data that showed U.S. weekly jobless claims falling to their lowest levels since July 2008 payday loans guaranteed no fax. Initial claims fell 34,000 to a seasonally adjusted 388,000 in the latest week. Read in detail about jobless claims data.
There was further good economic news when the National Association of Realtors said pending U.S. home sales rose 3.5% in November. The data suggests a gradual recovery into next year, said the NAR. Read more about housing data.
The dollar fell against the Swiss franc and the Turkish lira , though it was registering gains against the British pound and Japanese yen .
“The Swiss franc traded at record highs against the euro and the greenback in thin year-end trade, as euro-zone debt concerns and softer U.S. yields have boosted demand for the franc,” wrote analysts at Brown Brothers Harriman.
On Wednesday, the dollar extended losses against the euro and yen after a strong U.S. bond sale pushed down government bond yields and lowered the appeal of the currency.
Treasury yields ticked higher Thursday.
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