Falling U.S. Jobless Claims Lift Dollar

(RTTNews) - The U.S. dollar appreciated against its most major opponents in the European session on Thursday, as an unexpected decrease in initial jobless claims last week supported expectations that the Federal Reserve will keep rates higher for a longer period.

Data from the Labor Department showed that initial jobless claims fell to 216,000, a decrease of 13,000 from the previous week's revised level of 229,000.

Economists had expected jobless claims to rise to 234,000 from the 228,000 originally reported for the previous week.

While the Fed is still widely expected to leave interest rates unchanged at its next meeting later this month, CME Group's FedWatch Tool indicates a 44.6 percent chance of another rate hike in November.

Risk sentiment deteriorated following the Wall Street Journal report that China has restricted the use of iPhones by central government officials.

The greenback climbed to a 3-month high of 1.0685 against the euro and near a 3-month high of 1.2445 against the pound, from its early lows of 1.0731 and 1.2508, respectively. The currency is seen facing resistance around 1.05 against the euro and 1.21 against the pound.

The greenback appreciated to 1.3679 against the loonie, setting a 5-1/2-month high. The greenback may challenge resistance around the 1.38 level.

The greenback was up against the franc, at 0.8940. If the currency rises further, 0.91 is likely seen as its next resistance level.

Against the aussie and the kiwi, the greenback rebounded to 0.6366 and 0.5869, respectively. Next key resistance for the greenback may be located around 0.60 against the aussie and 0.57 against the kiwi.

In contrast, the greenback dropped to 147.04 against the yen, reversing from a previous nearly 1-year high of 147.87. The currency is poised to find support around the 142.00 level.