NEW YORK: The dollar rallied against the euro and the yen Thursday, after newly-released data suggested the US economy remains comparatively strong.
The Department of Labor reported that initial US jobless claims for the week ending October 11 fell to 264,000, the lowest level since 2000.
Then the Federal Reserve said US industrial production rose a robust 1.0 percent in September, recovering from an unexpected drop in August.
The two reports helped counteract disappointing data earlier in the week, including a poor September retail sales report that pushed the dollar lower Wednesday.
The move Wednesday came as traders perceived a higher chance the Federal Reserve would wait longer before raising benchmark interest rates.
"Any delay in expected monetary normalization by the Fed will indeed hurt the dollar," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
"However, the dollar is likely to remain underpinned by the view that America's economy remains the 'cleanest shirt in the hamper'."
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