NEW YORK (CNNMoney.com) -- The dollar extended declines versus the euro Thursday as investors cheered an upbeat report on employment and became more confident in the health of the euro zone economy.
What prices are doing: The dollar slipped 0.6% versus the euro to $1.2693.
Against the British pound, the greenback fell 0.1% to $1.5158 and it rose 1% versus the Japanese yen to ¥88.365.
What's moving the market: The euro gained after the Committee of European Bank Supervisors provided details about the stress tests of European banks scheduled for later this month.
"It looks like they're not going to be particularly rigorous and this is giving investors temporary confidence," said Brian Dolan, chief currency strategist at Forex.com.
The euro was further lifted after the European Central Bank announced it will hold interest rates steady and said it expects economic growth to continue in the second half of the year.
Meanwhile, investors in the U.S. focused on a handful of economic reports released Thursday.
The Department of Labor said the number of Americans filing first-time claims for unemployment insurance fell to 454,000 last week from an upwardly revised 475,000 in the previous week.
Economists surveyed by Briefing.com expected claims to have eased to 460,000 last week from 472,000 in the previous week.
Retailers posted their tenth straight month of increasing same-store sales on Thursday, but overall results slightly missed expectations as many stores struggled to attract customers.
A separate report Thursday showed that consumer credit sank by $9.1 billion in May, a much bigger decline than the $3 billion drop expected by economists.
What analysts are saying: If jitters about the global economy worsen and growth slows more than expected in the second half of the year, the dollar will be the beneficiary, said Dolan.
"Right now, risk is on, but there's a lot happening under the surface that should make us cautious," he said. "So we're going to need to price in a greater sell-off in risk appetite in the second half of 2010." 
| 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% |
|
Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More |
Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More |
Honda and General Motors are creating a new generation of fully autonomous vehicles. More |
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More |
Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. More |
