NewsMine — economy — united-states — 2004 — 2004-apr-may — Viewing Item

Dollar slide as job claims less than forecast Original Source Link: (May no longer be active)    http://quote.bloomberg.com/apps/news?pid=10000101&sid=aiYfZPRTKk_w&refer=japan http://quote.bloomberg.com/apps/news?pid=10000101&sid=aiYfZPRTKk_w&refer=japan Dollar May Extend Slide as Jobs Claims Fall Less Than Forecast April 23 (Bloomberg) -- The dollar may extend its decline from a five-month high versus the euro after a report showed U.S. jobless claims fell less than expected, dimming expectations the Federal Reserve will raise interest rates before September. Fed policy makers including Chairman Alan Greenspan this week signaled they are prepared to raise the central bank's benchmark rate from a 45-year low of 1 percent on signs of rising prices and stronger job growth. The report bolstered expectations that a surge in employment last month won't be repeated in April. ``The market was thinking irrationally that a rate hike would come as early as May,'' said Craig Ferguson, currency strategist in Melbourne at Australia and New Zealand Banking Group. ``The Fed still needs to see better payroll numbers. The dollar looks like it will weaken a bit more.'' Against the euro, the dollar was at $1.1919 at 8:26 a.m. in Tokyo, according to EBS, an electronic foreign-exchange dealing system, from $1.1902 late in New York yesterday, when it had its biggest drop in three weeks. The dollar bought 109.44 yen. The U.S. currency yesterday rose as high as $1.1779 versus the euro, the strongest since Nov. 26. Demand for the U.S. currency waned after the government said new claims for jobless benefits declined to 353,000 last week from a revised 362,000 the week before. Economists surveyed by Bloomberg News had forecast a drop to 340,000. A separate report showed producer prices rose 0.5 percent in March. The Fed's overnight lending rate is half the benchmark rate of the European Central Bank. Euro gains will probably be capped at the currency's 200-day moving average, which was $1.1936 yesterday, said Marc Chandler, chief currency strategist in New York at HSBC Securities USA Inc., a unit of the world's second-biggest bank. The euro closed below that average this week for the first time since September. Speeches Fed Governor Susan Bies led a trio of speeches by Fed officials who vote at the central bank's policy sessions. Bies, speaking before bankers in Nashville, said she is ``optimistic that job growth will pick up.'' She also said ``disinflation may have come to an end.'' Fed Governor Ben S. Bernanke said it's a ``given'' that rates will eventually ``normalize,'' though the labor market is keeping the timing ``uncertain.'' He also said monetary policy is in a ``transition phase.'' He spoke at the Bond Market Association's annual meeting in New York. Federal Reserve Bank of Kansas City President Thomas Hoenig speaks in Kansas City at 7:45 p.m. local time.

Asain stocks plunge on rate hike fears Bank of america cuts 12k jobs Big drop in us job claims Bubbling us inflation boosts talk of fed rate rise Buffet warns inflation heating up { May 3 2004 } Bush job growth helped by supermarket strike ending { April 3 2004 } Consumer prices rise heightening inflation concern { April 14 2004 } Consumer prices rise more than expected causing inflation Dollar slide as job claims less than forecast Dow slumps below 10 thousand Fired workers train their replacements in india { April 6 2004 } Four hundred thousand gave up looking in february { March 11 2004 } Greenspan reiterates stern deficit warning { May 6 2004 } Greenspan warns of deficit as big threat to economy { May 7 2004 } Homeless vets of iraq { April 24 2004 } IMF warns housing prices asset bubble { April 23 2004 } Inflationary pressures build Lower market blamed on job growth { May 7 2004 } Markets falter amid fears over us rate rise { May 10 2004 } Military families on food stamps Milk prices expectd to drop to normal Mortgage applications drop as home buying slows Pay in england grows as unemployment falls { April 16 2004 } Stocks bond gold sink on china fears Stocks fall on good jobs report Stocks hit 2004 lows Summer teen jobs scarce Trade deficit widens as follar falls Unemployment rise 30 thousand april week { April 16 2004 } Us trade deficit hits record as imports increase Weak dollar oil prices shatter the global economy { March 24 2004 } Files Listed: 31

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