The US Dollar edged higher against the Pound but remains close to a nine-month low after data showed that the number of US citizens claiming jobless benefits increased less-than-expected last week .
Against the Euro however the ‘Greenback’ remained close to an eight-month low after the single currency received support from positive economic data and as investors continue to speculate that the Federal Reserve will choose to delay tapering its monetary easing programme as a result of the ongoing shutdown of the federal government. The closure of the government has piled on the pressure for the US Dollar.
According to the US Department of Labour, the number of people claiming jobless benefits increased by 1,000 in the week ending September 28th. Jobless claims for the preceding week were revised up to a gain of 307,000 from a previously reported increase of 305,000. The data was better-than-expected as analysts had expected U.S. jobless claims to rise by 6,000 to 313,000 last week. The four-week average of new claims, which smoothes out weekly volatility, fell 3,750 to 305,000, the lowest level since May 2007.
Despite the positive data investors were little moved as expectations that the government shutdown could drag on increased after House Speaker John Boehner hinted at a lack of progress in negotiations over resolving the political impasse in Congress.
Investors are also growing increasingly concerned as to what impact the government shutdown will have on talks over raising the nation’s debt ceiling. If the world’s largest economy is to avoid defaulting on its debts then a deal must be made by October 17th. If it doesn’t then the impacts are likely to be highly negative for the global economy.
Also weighing upon the Dollar was the latest ISM Non-Manufacturing data which came in lower than expectations. The Index came in at 54.4 for September, down from the previous months reading 58.6 and below forecasts for 57.4. Any figure above 50 indicates expansion.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6174
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7353
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0331
The US Dollar/ Australian Dollar Exchange Rate is currently in the region of: 1.0655
The US Dollar/ New Zealand Dollar Exchange Rate is currently in the region of: 1.2034
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.8185
The US Dollar/ South African Rand Exchange Rate is currently in the region of: 10.0611
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6195
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3599
(Correct as of 15:10 pm GMT)
Comments are closed.