U.S. Dollar Higher as Jobless Claims Drop

The dollar touched a four-month high as initial-jobless claims fell last week, a sign the labor market may be recovering.

Canada’s dollar pared a gain after Prime Minister Stephen Harper said the central bank’s monetary policy is appropriate. The greenback dropped versus the euro as the cost of living in the U.S. climbed in December by the most in six months. The Turkish lira dropped to a record, while the Australian dollar tumbled to the weakest since 2010.

“It shows in the markets overall things seem to be improving,” Sireen Harajli, a strategist at Mizuho Bank Ltd. in New York, said in a phone interview. “In light of employment data being fairly stable, the focus is going to turn to the fact that we’re not getting much inflation pressure.”

Bloomberg

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