The dollar is losing ground against its major rivals Thursday afternoon after a recent jump by U.S. treasury yields raised concerns about the outlook for interest rates. With the ten-year yield reaching its highest levels in over seven years, traders seem worried the Federal Reserve may raise rates more aggressively than currently anticipated.
With the release of the closely watched monthly jobs report looming, the Labor Department released a report on Thursday showing a bigger than expected drop in first-time claims for U.S. unemployment benefits in the week ended September 29th.
The Labor Department said initial jobless claims fell to 207,000, a decrease of 8,000 from the previous week's revised level of 215,000. Economists had expected jobless claims to edge down to 213,000 from the 214,000 originally reported for the previous week.
After reporting a pullback in new orders for U.S. manufactured goods in the previous month, the Commerce Department released a report on Thursday showing a substantial rebound in factory orders in the month of August.
The Commerce Department said factory orders surged up by 2.3 percent in August after falling by a revised 0.5 percent in July. Economists had expected factory orders to jump by 2.1 percent compared to the 0.8 percent drop originally reported for the previous month.
The dollar rose to an early high of $1.1463 against the Euro Thursday, but has since retreated to around $1.1510.
The German construction sector saw a loss of growth momentum in September, data from IHS Markit revealed Thursday. The construction Purchasing Managers' Index came in at 50.2 in September, down from 51.5 in August. A score above 50 indicates expansion.
The buck has pulled back to around $1.3015 against the pound sterling Thursday afternoon, from an early high of $1.2921.
The greenback has dropped to around Y113.765 against the Japanese Yen Thursday afternoon, from an early high of Y114.521.
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