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U.S. dollar falls on weaker GDP growth, rising risk appetite(Xinhua) 09:53, December 22, 2023
NEW YORK, Dec. 21 (Xinhua) -- The U.S. dollar lost in late trading on Thursday, pressured by downward adjustment of the GDP growth rate in the third quarter of 2023 and improving sentiment in the stock market.
The dollar index, which measures the greenback against six major peers, decreased 0.56 percent to 101.8449 in late trading.
U.S. GDP grew at 4.9 percent seasonally adjusted annual rate in the third quarter this year, lower than the 5.2 percent of an earlier estimate, the U.S. Bureau of Economic Analysis said Thursday.
Meanwhile, the Labor Department reported Thursday that jobless claims were up by 2,000 to 205,000 in the week that ended Dec. 16. The four-week average of claims, which smooths out week-to-week ups and downs, fell by 1,500 to 212,000.
"The data continue to signal that layoffs remain low," said Rubeela Farooqi, chief U.S. economist at High Frequency Economics. "However, demand for workers appears to be easing; job growth remains robust but has moderated, openings have moved lower ... That should help rebalance the labor market and take pressure off wages and prices, in line with (Fed) policymakers' expectations."
Investors now see a nearly 80 percent probability the Fed will cut rates in or before March, according to the CME Group's FedWatch tool. Attention now turns to Friday's reading on the U.S. core personal consumption expenditure (PCE) index.
In late New York trading, the euro was up to 1.0998 U.S. dollars from 1.0945 dollars in the previous session, as the business climate in France rebounded slightly in December. The British pound was up to 1.2684 U.S. dollars from 1.2641 dollars in the previous session.
The U.S. dollar bought 142.2700 Japanese yen, lower than 143.8380 Japanese yen of the previous session. The U.S. dollar fell to 0.8570 Swiss francs from 0.8630 Swiss francs, and it fell to 1.3293 Canadian dollars from 1.3347 Canadian dollars. The U.S. dollar fell to 10.0989 Swedish kronor from 10.1736 Swedish kronor.
(Web editor: Zhang Kaiwei, Liang Jun)
