Special Report: Global Financial Crisis
NEW YORK, Nov. 13 (Xinhua) -- The U.S. dollar rose against the pound but fell against the euro Thursday on weak economic data and rising U.S. stocks.
The U.S. Labor Department reported Thursday that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000, the highest level after the Sept. 11 terrorist attacks.
The jobless data was much higher than expected and the first time it topped 500,000 in the current slowdown. It is the latest sign that times are getting tougher. A reading above 400,000 is considered a sign of recession.
Wall Street fell in early trading amid the weak job report, lifting the dollar against major currencies. The euro was also hit by the report that Germany's gross domestic product contracted in the third quarter.
Risk aversion eased in later foreign exchange trading as U.S. stocks rebounded on bargain hunting. Analysts said investors rushed back into the market to pick up cheap stocks following sharp falls in recent sessions.
Meanwhile, confidence in financial markets was also boosted as investors were expecting a new solution to the financial crisis from a global financial summit in Washington at the weekend.
The euro bought 1.2695 dollars in late New York trading compared with 1.2512 dollars it bought late Wednesday, while the pound fell to 1.4671 dollars from 1.4966 dollars.