Thursday, June 7, 2007

Dollar Gains On Euro And Pound; Down Versus Yen, Thursday, June 07, 2007 4:44:27 PM

The U.S. dollar strengthened against the euro and sterling on Thursday, but slipped slightly against the yen. The greenback advanced to a weekly high against the pound and euro. It advanced early on the yen, as well, but was not able to retain those gains. The trading came amid news that weekly U.S. jobless claims unexpectedly edged down to 309,000 from the previous week`s unrevised figure of 310,000.

Meanwhile, the Department of Commerce`s wholesale trade report showed that wholesale inventories rose 0.3 percent in April following an upwardly revised 0.4 percent increase in March. The dollar was also affected by further speculation that the Federal Reserve will not be able to cut interest rates any time soon.

The dollar reached a weekly high against the pound on Thursday. The rise came on the news that the Bank of England kept its key interest rate unchanged at 5.5%. The dollar advanced against the sterling from 7 a.m. until about 1 p.m. ET before stabilizing. It got as high as 1.9746, its best mark of June.

The greenback stabilized near a weekly high against the euro during in Thursday`s New York trading. The dollar climbed into the morning amid the release of the German wholesale price index for May. The greenback added to its gains later in the morning, and reached 1.3421 at around 1 pm ET. Trading was level for the next few hours.

The dollar dropped against the yen in early-afternoon trading Thursday in New York and returned to its overnight levels. The greenback climbed during the early morning trading and then began a slight uptrend. At 9:45 a.m. Eastern Time, the buck touched a daily high of 121.55 against the yen. It remained near that level for a few hours before plunging at around 12:30 p.m. ET. It got as low as 120.92 at 1:30 p.m. ET. The buck trended up slightly from there and was slightly below its overnight mark at 121.01 approaching 4 p.m.
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