2023.03.3020:53:00UTC+00Dollar Loses Ground Against Major Rivals After GDP, Jobless Claims Data

The U.S. dollar drifted lower against its major counterparts on Thursday as data showing a slower than expected pace of economic growth in the fourth quarter, and an increase in jobless claims, raised the possibility of the Federal Reserve pausing on interest rate hikes.

The Commerce Department's report said the real gross domestic product increased by 2.6% in the fourth quarter, as against a previously reported 2.7% increase.

Data from the Labor Department showed initial jobless claims rose to 198,000 in the week ended March 24th, an increase of 7,000 from the previous week's unrevised level of 191,000. Jobless claims were expected to inch up to 196,000.

CME Group's FedWatch Tool now indicates a 48.2% chance of the central bank leaving rates unchanged at its next meeting in early May and a 51.8% chance of a 25 basis point increase.

The dollar index fell to 102.07 this morning, and is currently at 102.17, down nearly 0.5% from the previous close.

Against the Euro, the dollar has weakened to 1.0904 from 1.0844. The dollar is trading at 1.2389 against Pound Sterling, easing from 1.2316.

Against the Japanese currency, the dollar is marginally down, fetching 132.70 yen a unit, compared with 132.22 yen on Wednesday.

The dollar has weakened to 0.6713 against the Aussie from 0.6685. The Swiss franc is stronger at 0.9139 a dollar, gaining from 0.9184.

The Canadian currency is up at C$1.3525 a U.S. dollar, strengthening from C$1.3560.