Nov. 24 (Bloomberg) -- The dollar and yen fell against the Australian dollar and Brazilian real as U.S. initial jobless claims fell to the lowest level since July 2008 and consumer spending rose, spurring demand for assets related to growth. Canada’s loonie rose against all of its major counterparts tracked by Bloomberg on evidence of recovery in the North American nation’s biggest trading partner and a gain in crude oil prices. The euro traded at almost a two-month low against the dollar as Ireland’s debt rating was lowered two steps by Standard & Poor’s. “The dollar buying pressure is not there anymore,” said Greg Anderson, a currency strategist at Citigroup Inc. in New York. “The data seems a little bit dollar-negative.” The dollar depreciated 1 percent to 98.19 U.S. cents versus the Australian currency at 9:17 a.m. in New York, from 97.23 yesterday. The yen slid 1.2 percent to 82.17 versus the Canadian dollar, from 81.16. The euro traded at $1.3377, compared with $1.3367, after falling to $1.3285, the lowest level since Sept. 22. The dollar rose 0.2 percent to 83.31 yen, from 83.16 yen. Initial jobless claims fell to 407,000 in the week ended Nov. 20, from a revised 441,000 in the previous week, Labor Department figures showed today. The median forecast of 48 economists in a Bloomberg News survey was for a drop to 435,000. from a previously reported 439,000. Household purchases in the U.S. gained 0.4 percent in October after a revised 0.3 percent gain in the prior month, the Commerce Department reported. Comments From Merkel The euro fell 1.9 percent yesterday against the dollar as German Chancellor Angela Merkel said in Berlin that the 16- nation currency is in an “exceptionally serious” situation after Ireland asked for a financial rescue. It was the biggest drop in the euro since Aug. 11, when the Federal Reserve’s outlook for slower U.S. economic growth spurred demand for safety. Ireland’s Prime Minister Brian Cowen said today the government discussed a bailout of about 85 billion euros ($113 billion) with the International Monetary Fund and European Union and the size hasn’t been decided yet. The long-term sovereign rating of Ireland was lowered to A from AA- and its short-term rating to A-1 from A-1+ by Standard & Poor’s Ratings Services, which cited concern about additional borrowing by the government as it seeks external aid from the IMF and the European Union. Ireland led the bonds of the most-indebted euro-region nations lower as the fallout from its fiscal crisis fanned out through the region. Portugal faced its biggest strike in 22 years in a protest against government austerity measures. Shares of Bank of Ireland Plc and Allied Irish Banks Plc dropped. The dollar and yen also fell today on eased demand for a refuge from geopolitical tension as the U.S. sent an aircraft carrier to take part in exercises off the Korean peninsula after North Korea fired artillery shells at South Korea.

Source