BRUSSELS (Alliance News) - The US dollar resumed its early slide against its major rivals on Thursday, as a raft of weak data out of the US rekindled worries over the growth of economy.
While the initial jobless claims increased unexpectedly last week, housing starts rebounded less-than-expected in March and building permits worsened more-than-forecast for the same month.
According to a report released by the Labor Department, the initial jobless claims climbed to 294,000, an increase of 12,000 from the previous week's revised level of 282,000.
The economists had expected jobless claims to edge down to 280,00.
Data from the Commerce Department showed that housing starts rose 2.0% to an annual rate of 926,000 in March, down from forecasts for an increase of 1.04 million. The housing starts tumbled 15.3% to a rate of 908,000 in February.
The building permits, an indicator of future housing demand, fell 5.7% to an annual rate of 1.039 million in March from the revised February rate of 1.102 million. Building permits had been expected to edge down to 1.085 million.
The dollar fell Wednesday, as US industrial production for March and the New York manufacturing data for April were weaker-than-anticipated.
The greenback hit 8-day lows of 1.4939 against the Sterling and 0.9601 against the franc, down from yesterday's closing values of 1.4837 and 0.9640, respectively. The greenback is seen challenging support around 1.50 against the Sterling and 0.95 against the franc.
The greenback declined to 1.0767 against the euro, its weakest since April 9, and was down by 0.80% from Wednesday's closing quote of 1.0682. If the greenback extends slide, it may find support around the 1.09 mark.
The greenback-yen pair showed no reaction to the data, even as it pared gains to 119.08. This may be compared to an early high of 119.46. Next key support for the greenback may be located near the 118.00 area.
Looking ahead, Federal Reserve Bank of Atlanta President Dennis Lockhart will deliver a speech about the US economic outlook and monetary policy at the Palm Beach County Convention Center at 1:00 am ET.
After 10 minutes, Federal Reserve Bank of Cleveland President Loretta Mester will speak on the economy before the Forecasters Club of New York.
Subsequently, Federal Reserve Bank of Boston President Eric Rosengren participates in "The US Economic Outlook and Implications for Monetary Policy" event hosted by Chatham House in London at 1:30 pm ET.
At 3:00 pm ET, Federal Reserve Governor Stanley Fischer will participate in a panel discussion titled "The Elusive Pursuit of Inflation" at the International Monetary Fund Spring Meetings in Washington DC.
