* Softer-than-forecast U.S. jobless claims weigh on dollar
* Dollar more sensitive to interest rates
* Bitcoin hits another all-time peak
* Currency markets quiet, holidays in China and Japan
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
(Adds new comments, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Feb 11 (Reuters) - The dollar fell against some of the major currencies on Thursday, weighed
down by slightly weaker-than-expected U.S. jobless claims data that followed tepid inflation numbers and a
dovish message from the Federal Reserve the previous session.
Currency moves, however, were confined to narrow ranges due to holidays in Japan and China.
In the cryptocurrency sector, bitcoin hit another record of $48,481.45 BTC=BTSP , as it continues its
march toward the $50,000 mark. It was last up 6.3% at $47,685, rising after news that BNY Mellon became the
latest firm to embrace cryptocurrencies. Thursday's data showed initial claims for state unemployment benefits totalled a seasonally adjusted
793,000 for the week ended Feb. 6, compared to 812,000 a week before. Economists polled by Reuters had
forecast 757,000 applications for the period. "The job market's glacial pace of improvement justifies the Federal Reserve's dovish bias which could
leave the dollar vulnerable to increased weakness over the short run," said Joe Manimbo, senior market
analyst, at Western Union Business Solutions in Washington.
The jobless claims report followed data on Wednesday which showed U.S. core inflation last month was
zero, against market expectations of 0.2%.
In afternoon trading, the euro was up around 0.1% against the dollar at $1.2134 EUR=EBS . A European
Commission forecast that the euro zone economy will rebound less than earlier expected in 2021 did not
impact the currency. "Going forward, the dollar is going to do better, against the euro, for one," said Ron Simpson, managing
director, global currency analysis at Action Economics in Tampa, Florida.
"The potential for economic recovery in Europe is looking pretty dismal right now," he added.
The dollar index was down slightly at 90.393 =USD . So far the dollar was on track for its largest
weekly loss since around mid-December. But prior to this week, the dollar had gained more than 2% since
January as investors covered extreme short positions on the currency.
Fed Chair Jerome Powell reiterated on Wednesday that the central bank's new policy framework could
accommodate annual inflation above 2% for some time before raising rates, reinforcing market expectations of
a weak dollar trend.
Several analysts noted that the dollar has recently become more sensitive to interest rate expectations.
Over the past year, risk appetite dictated the dollar's direction: rising as a safe haven when there's
political and financial stress, and falling in times of global expansions.
That may be changing, HSBC analysts said.
"There is good reason for this thinking, as the outlook for the Fed is more in focus than a few months
ago. Moreover, this could be an early warning sign that the U.S. dollar downtrend could also be starting to
end," HSBC said.
Commodity currencies such as the Australian and New Zealand dollars also rose against the greenback.
The Australian dollar - viewed as a liquid proxy for risk appetite - was up 0.3% at US$0.7749. It hit a
three-week high earlier in the session of US$0.7772 AUD=D3 .
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Currency bid prices at 3:22PM (2022 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD 90.3870 90.4290 -0.04% 0.451% +90.4730 +90.2610
Euro/Dollar EUR=EBS $1.2134 $1.2119 +0.12% -0.69% +$1.2150 +$1.2114
Dollar/Yen JPY=D3 104.7250 104.6700 +0.10% +1.44% +104.8000 +104.5900
Euro/Yen EURJPY= 127.08 126.74 +0.27% +0.13% +127.1600 +126.7100
Dollar/Swiss CHF=EBS 0.8898 0.8906 -0.08% +0.59% +0.8910 +0.8893
Sterling/Dollar GBP=D3 $1.3811 $1.3836 -0.21% +1.06% +$1.3859 +$1.3800
Dollar/Canadian CAD=D3 1.2697 1.2698 +0.00% -0.28% +1.2710 +1.2661
Aussie/Dollar AUD=D3 $0.7753 $0.7723 +0.39% +0.79% +$0.7771 +$0.7713
Euro/Swiss EURCHF= 1.0796 1.0787 +0.08% -0.10% +1.0807 +1.0787
Euro/Sterling EURGBP= 0.8782 0.8756 +0.30% -1.73% +0.8788 +0.8753
NZ NZD=D3 $0.7225 $0.7215 +0.14% +0.61% +$0.7251 +$0.7205
Dollar/Dollar
Dollar/Norway NOK=D3 8.4735 8.4660 +0.27% -1.15% +8.4870 +8.4420
Euro/Norway EURNOK= 10.2830 10.2597 +0.23% -1.75% +10.2973 +10.2380
Dollar/Sweden SEK= 8.3186 8.3204 +0.20% +1.49% +8.3330 +8.2979
Euro/Sweden EURSEK= 10.0936 10.0730 +0.20% +0.17% +10.1085 +10.0765
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