Investing.com - The dollar traded lower against most major
currencies on Thursday after tensions between Russia and the
Ukraine flared anew, prompting investors to avoid the greenback on
fears the U.S. may be dragged deeper into the crisis.
In U.S. trading on Thursday, EUR/USD was up 0.08% at 1.3827.
Ukraine military forces killed five separatists earlier, while
Russian President Vladimir Putin warned Kiev against stepping up
its offensive against the rebels, sparking fears the U.S. will slap
fresh sanctions on Moscow and turn the standoff up a notch.
Geopolitical tensions eclipsed overall positive U.S. data and
sent investors chasing safe-haven yen positions, while markets took
dovish comments from European Central Bank President Mario Draghi
The Commerce Department reported earlier that U.S. orders for
durable goods rose 2.6% in March, beating expectations for a 2%
Core durable goods orders, which exclude volatile transportation
items, rose 2% last month, far outpacing forecasts for a 0.6%
Separately, the Labor Department said the number of individuals
who filed for unemployment assistance in the U.S. in the week
ending April 19 rose by 24,000 to 329,000. Analysts had expected an
increase of 5,000.
Despite the increase, underlying trends still point to recovery
in the labor market, giving the dollar some cushion.
Meanwhile in Europe, ECB President Mario Draghi reiterated his
stance that a strengthening euro could trigger further monetary
easing, which capped the euro's gains.
Speaking at a conference in Amsterdam, Draghi said the euro
exchange rate is an "increasingly important factor" in monetary
policy. The exchange rate is not a policy target in itself, but the
bank's monetary policy stance could be affected by a continued
appreciation in the currency, Draghi added.
He also said the ECB could launch a "broad-based" asset purchase
program if the medium-term inflation outlook deteriorated.
Elsewhere in Europe, German research institute Ifo reported that
its business climate index rose to a two-month high of 111.2 for
April from 110.7 in March, beating expectations for a 110.5
The dollar was down against the yen, with USD/JPY down 0.21% at
102.32, and down against the Swiss franc, with USD/CHF down 0.16%
The greenback was down against the pound, with GBP/USD up 0.12%
The dollar was mixed against its cousins in Canada, Australia
and New Zealand, with USD/CAD down 0.05% at 1.1027, AUD/USD down
0.32% at 0.9260 and NZD/USD down 0.25% at 0.8568.
The US dollar index, which tracks the performance of the
greenback versus a basket of six other major currencies, was down
0.10% at 79.87.
On Friday, the U.S. is to round up the week with revised data on
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