Home » USD » US Dollar (USD) Exchange Rate – ‘Greenback’ strengthens after jobless claims hit five-year low and trade deficit narrows

US Dollar (USD) Exchange Rate – ‘Greenback’ strengthens after jobless claims hit five-year low and trade deficit narrows

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The US Dollar has strengthened against the majority of its peers after data revealed that the number of Americans filing for unemployment benefit unexpectedly fell to its lowest level in five years and the world largest economies trade deficit shrank by 11%.

In a report, the U.S. Department of Labour said the number of individuals filing for initial jobless benefits in the week ending April 26 fell by 18,000 to a seasonally adjusted 324,000, compared to expectations for an increase of 3,000 to 345,000.

Jobless claims for the preceding week were revised up to 342,000 from a previously reported increase of 339,000.

Continuing jobless claims in the week ended April 20 rose to 3.019 million. Analysts had expected continuing claims to rise to 3.028 million from last week’s revised figure of 3.007 million.

Ongoing weakness in the labour market led the U.S. Federal Reserve to keep a monetary stimulus programs at full throttle on Wednesday following a two-day policy review. Policymakers said in a statement they could even step up bond purchases to help the economy more if needed.

Separately, Commerce Department data showed the U.S. trade deficit fell more than expected in March as imports recorded their biggest drop since 2009.

That suggests economic growth in the first quarter may have been stronger than the 2.5 percent annual rate initially estimated by the government. The trade gap narrowed 11.0 percent to $38.8 billion – the second smallest since January 2010.

Current US Dollar (USD) Exchange Rates

As of 15:15 pm GMT

The US Dollar to Pound Sterling exchange rate is currently trading in the region of 0.6432

The US Dollar to Euro exchange rate is currently trading in the region of 0.7640

The US Dollar to Australian Dollar exchange rate is currently trading in the region of 0.9759

The US Dollar to Canadian Dollar exchange rate is currently trading in the region of 1.0071

The US Dollar to Japanese Yen exchange rate is currently trading in the region of 97.8536

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