On Thursday the U.S. dollar climbed as Chinese stocks recovered, easing traders’ nervousness that the rapid selloff in that market could could impact the world economy.
The ICE U.S. dollar index - measuring the dollar’s strength against a basket of six currencies - was up 0.1% to 96.3600.
Earlier, data showed that the number of people who filed for unemployment assistance in the U.S. last week rose to the highest level in almost five months, dampening optimism over the strength of the economy and dimming prospects for higher interest rates.
Initial jobless benefits in the week ending July 4 rose by 15,000 to a seasonally adjusted 297,000 from the previous week’s total of 282,000. Analysts had expected initial jobless claims to drop by 7,000 to 275,000 last week.
EUR/USD was last at 1.1048 from 1.1072 late Wednesday in New York.
The dollar was higher against the Japanese yen Thursday after falling to a six-week low during Wednesday’s session. It was up 0.59% to 121.43 yen, from 120.80 late Wednesday in New York.
Earlier today, Chinese shares recorded their biggest daily gain in six years, aiding to restore confidence after the Shanghai Composite and the smaller Shenzhen market shed a third of their value over the past month.
The dollar was pressured against the euro and yen on Wednesday, after minutes from a June meeting of Federal Reserve policy makers signaled that several members of the rate-setting committee would be doubtful about lifting rates with the threat of a Greek exit from the euro looming over Europe’s economy.
A day earlier, Greek leaders said they would ask their international creditors for a three-year bailout. They have until the end of the day, Brussels time, to submit a detailed report on proposed reforms.
But movements in exchange rates were relatively quiet, as traders hesitated to open new positions before European leaders make a decision over the weekend on whether or not to accept reform proposals from the Greek government.
In other currency trading, sterling was higher against the dollar after the Bank of England’s Monetary Policy Committee voted to hold its benchmark interest rate unchanged at 0.5%, and maintained its program of asset purchases.
The pound traded at $1.5382, up 0.14% from $1.5370 late Wednesday in New York.
