NEW YORK (CNN/Money) -
The dollar rallied on Thursday as fears of dollar-buying intervention and a sharp fall in oil prices convinced traders that it was a good time to take profits after days of heavy dollar sales.
After registering another all-time low against the euro overnight, the dollar rose as high as $1.3239 per euro. The dollar had set new lows against the euro in seven of the last eight sessions. The greenback also rose from a five-year low against the yen.
In late afternoon New York trading, the euro was quoted at $1.3269, down from $1.3323 late Wednesday and far below the record high of $1.3383 touched in overnight trade.
Against the Japanese yen, the dollar bought ¥103.20, up from ¥102.67 late Wednesday, after hitting a five-year low on the yen at ¥101.86.
Fears about dollar-buying intervention, particularly by the Bank of Japan, and the desire to cut back on short dollar positions ahead of Friday's U.S. payrolls report encouraged traders to buy back dollars, Richard Franulovich, senior currency strategist at Westpac Banking Corp. in New York, told Reuters.
"People are nervous about the BOJ and there was a big washout of dollar shorts," he added.
Japan on Thursday said that its concern about the dollar's steep decline was shared by Europe and the United States, keeping the market guessing about possible concerted action.
Speaking just after the dollar had fallen below 102 yen for the first time since January 2000, Japanese Finance Minister Sadakazu Tanigaki said market moves had been volatile and Japan was in "close contact" with European and U.S. authorities.
But a senior euro zone official later said that European finance ministers had not discussed joint intervention with Japan and did not urge the European Central Bank to intervene.
In the bond market, Treasury prices edged lower leaving yields slightly higher following a mixed release from the Labor Department showing an unexpected jump in the number of Americans filing new jobless claims.
The benchmark 10-year note lost 8/32 of a point to 98-25/32 to yield 4.40 percent, up from 4.37 percent late Wednesday. The 30-year bond shed 18/32 of a point at 104-19/32 to yield 5.05 percent, up from 5.03 percent on Wednesday. Bond prices and yields move in opposite directions.
The two-year note dropped a tick to 99-22/32 with a yield of 3.04 percent, while the five-year note lost 5/32 of a point at 98-28/32 to yield 3.75 percent.
According to the government report, 349,000 jobless claims were filed last week from a revised 324,000 the previous week. Analysts had forecast a rise to 330,000.
But the number of people who remain on the rolls after claiming an initial week of aid fell 20,000 to 2.72 million, the lowest since April 2001.
-- Reuters contributed to the story
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