The U.S. dollar gained 0.26 percent to 89.937 in trading on Thursday against a basket of six major currencies on the dollar index.
Pressure on Federal Reserve to Raise Interest Rates
Thursday’s upbeat data on the fall in unemployment benefits of Americans filing supported the dollar. Investors are now looking to the Federal Reserve after data showed that during February there was a rise in prices of imported goods. The increased price pressures and inflation might well see the Federal Reserve raising interest rates.
Currency strategist at Wells Fargo in New York, Eric Viloria said that ahead of the Federal Reserve meeting next week, the dollar is consolidating.
Rumours that the Trump Administration is seeking to impose more tariffs on China which could lead to a trade war has Wall Street investors concerned. The dollar fell 0.35 percent against the yen to 105.95 with investors seeking a safe haven.
Against the euro, the Norwegian crown was at a four-month high after the central bank kept rates at 0.5 percent. Expectations are that they will raise rates after the summer instead of previously forecast in December.
After weaker than expected fourth quarter GDP data the New Zealand dollar fell 0.55 percent against the dollar to $0.729.
The Swiss franc fell against the dollar.
There was little change to the euro which was at $1.2302.