NEW YORK: The US dollar significantly strengthened on Thursday, after the release of better-than-expected US economic data, Xinhua reported.
The dollar index, which measures the greenback against six major peers, rose 0.86 per cent to 101.7678 in late trading.
The US gross domestic product (GDP) grew at a seasonal and inflation adjusted 2.4 per cent annual rate in the second quarter, the US Commerce Department said Thursday, which was faster than economists expected.
The government’s measure of inflation in the economy, the price index for gross domestic purchases, rose at 1.9 per cent, the slowest in three years. The personal consumption expenditures price index (PCE) excluding food and energy advanced at 3.8 per cent, which was the smallest gain since 2021.
Immediately after the release of the GDP report, US Treasury yields moved higher, boosting the dollar.
Meanwhile, the US Labor Department reported on Thursday that initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 221,000 for the week ending July 22, the lowest level since February.
Also on Thursday, the European Central Bank raised its interest rates by 25 basis points, in line with expectations, and decided to set remuneration of minimum reserves at 0 per cent.
In late New York trading, the euro decreased to US$1.0973 from US$1.1105 in the previous session, and the British pound was down to US$1.2800 from US$1.2957 dollars.
The US dollar bought 139.3350 Japanese yen, lower than 139.9900 Japanese yen of the previous session. The US dollar increased to 0.8694 Swiss francs from 0.8605 Swiss francs, and it increased to 1.3232 Canadian dollars from 1.3198 Canadian dollars. The US dollar rose to 10.5203 Swedish krona from 10.3921 Swedish krona.-Bernama
