recent economy data Dollar retreats after weak economic data and yen has little problem
June 27th 2024 13:42 EDT
The yen rose to a 38-year low against the dollar on Thursday, helped by weaker US economic data, although investors remained on high alert for any signs of Japanese intervention to prop up the currency.
The dollar fell against a basket of currencies as Treasury yields fell following the data.
Reports from the US showed that jobless claims fell by 6,000 in the week ending June 22 to 233,000. Meanwhile, the number of people receiving benefits after an initial week of aid increased by 18,000 to 1.839 million during the week ending June 15.
At the same time, orders for non-defense capital goods excluding aircraft, a close indicator of companies' spending plans, fell 0.6% in last month's data. Economists consulted by Reuters predicted an increase of 0.1%.
The yen gained 0.2% against the dollar to 160.555
USD/JPY
, having fallen to 160.88 on Wednesday, its weakest level since 1986.
The yen's recent slide beyond the key level of 160 per dollar had investors nervous about possible intervention from Tokyo, after Japanese authorities spent 9.79 trillion yen ($60.94 billion) at the end of April and early May to lift the yen by 5% from a 34-year low of 160,245.
In other currencies, the pound
GBP TO USD
rose 0.3% to 1.2651 dollars, while the euro
EURUSD
It advanced 0.3%, to $1.0710.
The dollar index
DXY
fell 0.2% to 105.84, not far from a near two-month high of 106.13 on Wednesday.
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