The U.S. dollar shed ground against most of the major currencies on Thursday with traders reacting to the latest batch of economic reports, and looking ahead to the Commerce Department\'s report on personal income and spending in the month of May, which includes readings on inflation said to be preferred by the Federal Reserve.
The report is expected to show a modest slowdown in the annual rate of consumer price growth and could have a significant impact on the outlook for interest rates.
In economic news today, a report from the Labor Department showed first-time claims for U.S. unemployment benefits fell by more than expected in the week ended June 22nd, dropping to 233,000, a decrease of 6,000 from the previous week\'s revised level of 239,000. Economists had expected jobless claims to edge down to 236,000 from the 238,000 originally reported for the previous week.
The U.S. economy grew by slightly more than previously estimated in the first quarter of 2024, according to a report released by the Commerce Department. The report said gross domestic product jumped by 1.4% in the first quarter compared to the previously estimated 1.3% increase.
Another data from the Commerce Department said durable goods orders inched up by 0.1% in May after rising by a downwardly revised 0.2% in April. Economists had expected durable goods orders to slip by 0.1% compared to the 0.6% increase that had been reported for the previous month.
Excluding an increase orders for transportation equipment, durable goods orders edged down by 0.1% in May after climbing by 0.4% in April. Ex-transportation orders were expected to rise by 0.2%.
The dollar index dropped to 105.71 in early New York session, and despite recovering to 105.91, remained in negative territory, trailing previous closing level by about 0.12%.
Against the Euro, the dollar weakened to 1.0705 from 1.0681. The dollar was down against Pound Sterling at 1.2641, and against the Japanese currency, it firmed to fetch 160.79 yen a unit.
Against the Aussie, the dollar was little changed at 0.6650. The Swiss franc weakened to 0.8988 against the greenback, while the Loonie firmed to 1.3696 a unit of U.S. dollar.