By Polya Lesova and Sarah Turner, MarketWatch
NEW YORK (MarketWatch) — The U.S. dollar climbed against most other major currencies on Thursday as data showed weekly jobless claims declined to the second lowest level in five years.
The ICE dollar index DXY +0.12% , which measures the greenback against a basket of six other currencies, rose to 83.048, up from 82.936 in late North American trading on Wednesday.
The WSJ dollar index XX:BUXX +0.10% , which measures the greenback against a wider basket, traded at 73.96, up from 73.90 late the previous day.
The dollar was buoyed by data showing that initial jobless claims fell by 10,000 to a seasonally adjusted 332,000 in the week ended March 9, signaling that the labor market continues to improve.
The dollar had gained on Wednesday after February U.S. retail sales exceeded economist forecasts, adding to an upbeat view of the world’s largest economy.
On Thursday, the dollar USDJPY +0.3543% climbed to 96.43 yen from ÂĄ96.17 in late trading Wednesday, while the British pound GBPUSD +0.2377% reached $1.4949, up from $1.4919 late Wednesday.
The euro EURUSD -0.1975% slipped to $1.2938 from $1.2955 in the previous session, when it reached a three-month low.
Aussie rallies
The Australian dollar AUDUSD +0.6116% surged to $1.0354, up from $1.0289 in late trading Wednesday, after data from the Australian Bureau of Statistics showed Australia’s jobless rate remained steady at 5.4% in February in contrast to economist expectations for a rise to 5.5%.
The economy added 71,500 jobs in the month, far outstripping expectations for a net gain of 10,000 jobs.
RBC Capital Markets strategist Sue Trinh said that the much stronger-than-expected employment data led to Reserve Bank of Australia “rate-cut expectations getting pared back sharply.”
For the New Zealand dollar NZDUSD +0.0722% , a decision by the Reserve Bank of New Zealand to leave its policy rate at 2.5% saw the kiwi drop to 81.77 U.S. cents, after starting the session around the 83-cent mark.
The statement accompanying the rate decision was dovish, said Trinh, with the central bank citing the intensifying drought and ongoing headwinds from a stronger New Zealand dollar and fiscal drag.
Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.
Sarah Turner is MarketWatch's bureau chief in Sydney. Follow her on Twitter @SarahTurnerMKTW.
