NEW YORK (CNNMoney.com) -- The dollar turned higher against major currencies Thursday after reports on factory orders and the services sector fell short of economist expectations and investors opted once again for the safe-haven appeal of the U.S. currency.
What prices are doing: The dollar rose 0.7% against the euro to $1.2164 Thursday, and also inched up about 0.3% on the British pound to $1.4616.
The greenback also continued to post gains against the yen, rising 0.7% against the Japanese currency to ¥92.752, a day after the country's prime minister announced his resignation.
What's moving the market: The euro and pound posted minor gains against the dollar early Thursday morning but gave up those gains around 10 a.m. ET, following two key U.S. economic reports.
The Commerce Department reported that U.S. factory orders increased 1.2% in April, falling short of the 1.7% rise economists were expecting.
Meanwhile, the Institute for Supply Management's services sector index for May held steady at 55.4, missing forecasts for a rise to 55.6.
After both reports disappointed, that's when the dollar turned higher against the euro, said Kevin Chau, foreign currency strategist with IDEAGlobal. The U.S. currency is viewed as a safe-haven investment, so when stocks turned lower after the reports, investors fled from riskier assets to the dollar.
Meanwhile, the yen continued its retreat against both the dollar and euro Thursday, a day after Japanese Prime Minister Yukio Hatoyama announced his resignation. Investors anticipate that if Finance Minister Naoto Kan, a likely successor, takes the lead of the country, he will favor a weaker currency to aid the recovery of the Japanese economy.
Looking ahead: A highly anticipated government jobs report due on Friday, is expected to show U.S. employers added 500,000 positions to their payrolls in May. While that number would include government census hires, and not just private employers, it could still boost confidence in an economic recovery if it turns out to be higher than expected.
Overnight Avg Rate | Latest | Change | Last Week |
---|---|---|---|
30 yr fixed | 3.80% | 3.88% | |
15 yr fixed | 3.20% | 3.23% | |
5/1 ARM | 3.84% | 3.88% | |
30 yr refi | 3.82% | 3.93% | |
15 yr refi | 3.20% | 3.23% |
Today's featured rates:
Index | Last | Change | % Change |
---|---|---|---|
Dow | 32,627.97 | -234.33 | -0.71% |
Nasdaq | 13,215.24 | 99.07 | 0.76% |
S&P 500 | 3,913.10 | -2.36 | -0.06% |
Treasuries | 1.73 | 0.00 | 0.12% |
Company | Price | Change | % Change |
---|---|---|---|
Ford Motor Co | 8.29 | 0.05 | 0.61% |
Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
General Electric Co | 13.00 | -0.16 | -1.22% |
Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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