Dollar Recovers From Recent Losses, Gains Against Some Major Rivals

(RTTNews) - The U.S. dollar climbed higher on Thursday, recovering from recent losses, as data showing a bigger than expected drop in U.S. jobless claims dampened prospects of early rate cuts by the central bank.

Data from the Labor Department showed initial jobless claims dropped to 218,000 in the week ended February 3rd, a decrease of 9,000 from the previous week's upwardly revised level of 227,000.

Jobless claims were expected to edge down to 220,000 from the 224,000 originally reported for the previous week.

Traders also noted comments from Boston Fed President Susan Collins that rate cuts could come later this year. However, Susan has not given any timetable for action. She said she will need to see more evidence of inflation moving towards the 2% target before considering adjusting the policy rate.

A report from the Commerce Department showed wholesale inventories climbed by 0.4% in December after falling by a revised 0.4% in November. The growth in wholesale inventories matched economist expectations as well as the preliminary estimate provided late last month.

The rebound in wholesale inventories came as inventories of durable goods increased by 0.6%, more than offsetting a 0.1% dip in inventories of non-durable goods.

The dollar index climbed to 104.43 before easing to 104.14, but still stayed above the flat line, gaining about 0.08%.

Against the Euro, the dollar firmed to 1.0742 before paring gains. It was last seen at 1.0779, down marginally. Against Pound Sterling, the dollar gained slightly at 1.2619.

The dollar strengthened against the Japanese currency, fetching 149.33 yen a unit, nearly 0.8% up from Wednesday's close. Against the Aussie, the dollar firmed to 0.6493.

The Swiss franc gained marginally against the dollar, at CHF 0.8737, while the Loonie was up slightly at 1.3459 a U.S. dollar.