Thursday, 28 Oct 2010

Dollar Declines after Jobless Claims data ‎

The U.S currency fell Thursday, extending a decline against major currencies after a U.S. report ‎showed first-time claims for jobless benefits dropped more than analysts expected. ‎

The greenback has been under considerable pressure in the last month as traders anticipate ‎the Federal Reserve will announce plans next week to buy a massive amount of government ‎bonds, a process that would tend to weaken the dollar. ‎ Dollar's decline against the yen started after the Bank of Japan's made no changes to interest-‎rate policy, but moved forward the date of its next meeting to directly following the Fed's ‎upcoming gathering. The dollar bought 81.05 yen, down from 81.73 Wednesday. ‎ The dollar then extended its losses after the Labor Department said first-time filings for ‎unemployment benefits in the latest week fell by 21,000 to 434,000. ‎ Market players will be focusing on expected central bank measures to stimulate the U.S. ‎economy. The policy-setting Federal Open Market Committee meets next week, concluding ‎on Nov. 3. Investors and analysts expect the panel to announce a second round of quantitative ‎easing which might push the dollar further down.‎