Dollar surges as retail sales, jobs data improves
The dollar edged higher Thursday as stronger U.S. retail sales and other bright economic data contrasted with Europe's ongoing debt woes.
In late trading in New York, the 16-nation euro dropped back to $1.3576 from $1.3700 late Wednesday. The euro had risen above $1.37 Wednesday for the first time since mid-February as European officials and a credit ratings agency applauded Greece's plans to cut spending and raise taxes.
Greece sold $6.8 billion in bonds on Thursday, but the offering didn't come cheap. Greece had to lure in investors with a high yield compared to German bonds.
"They do have access to the debt markets, but at a very steep price," said Matthew Strauss, senior currency strategist at RBC Capital in Toronto. "The underlying concerns are still there."
Strauss noted that widespread strikes in Greece also are still troubling investors.
European Central Bank President Jean-Claude Trichet downplayed suggestions that the International Monetary Fund should step in to rescue Greece.
The dollar also got a boost from encouraging data on the U.S. economy.
Retail chains reported strong sales gains in February — their best since November 2007 — despite harsh winter weather. Meanwhile, the Labor Department said initial claims for unemployment insurance fell by 29,000 to a seasonally adjusted 469,000.
The government reports on February employment Friday. Economists are predicting that the jobless rate rose to 9.8 percent from 9.7 percent, while employers cut 50,000 jobs.
In other late trading Thursday, the British pound fell to $1.5029 from $1.5096 late Wednesday after the Bank of England also held interest rates at a record low of 0.5 percent for the 12th consecutive month.
The dollar rose to 89.10 Japanese yen from 88.40 yen, climbed to 1.0775 Swiss francs from 1.0678 francs, and was nearly flat at 1.0312 Canadian dollars from 1.0313.
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The dollar (often represented by the dollar sign: "$") is the name of the official currency in several nation states, including Australia, New Zealand, Canada, the Eastern Caribbean territories, Hong Kong, Taiwan, Singapore, Brunei, East Timor, Ecuador, El Salvador, Panama, Belize, and the United States.
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