2024.01.1820:29:00UTC+00Dollar Consolidates Recent Gains Against Major Counterparts

The U.S. dollar firmed against most of its major counterparts on Thursday amid fading hopes for an early rate cut after data showed a drop in jobless claims in the week ended January 12th. However, the currency pared gains subsequently and even turned slightly weak against some counterparts.

A report from the Labor Department said initial jobless claims fell to 187,000 in the week ended January 13th, a decrease of 16,000 from the previous week's revised level of 203,000. Economists had expected jobless claims to inch up to 207,000 from the 202,000 originally reported for the previous week.

With the unexpected decline, jobless claims dropped to their lowest level since hitting 182,000 in the week ended September 24, 2022.

A report released by the Federal Reserve Bank of Philadelphia showed regional manufacturing activity contracted at a slightly slower rate in the month of January.

The Philly Fed said its diffusion index for current general activity rose to a negative 10.6 in January from a revised reading of negative 12.8 in December. Economists had expected the index to rise to a negative 7.0 from the negative 10.5 originally reported for the previous month.

Data from the Commerce Department showed housing starts slumped by 4.3% to an annual rate of 1.460 million in December.

The dollar index, which advanced to 103.63 around late morning, was at 103.47 a little while ago, up slightly from the previous close.

Against the Euro, the dollar was up marginally at 1.0874, and against Pound Sterling, it weakened to 1.2703 after having firmed to 1.2647 following the release of the jobless claims data.

The dollar was flat against the Japanese currency at 148.16 yen. Against the Aussie, the dollar weakened to 0.6570. The Swiss franc was down at 0.8680 a dollar, while the Loonie edged up marginally against the greenback to C$ 1.3492.