No longer finding much support as the world’s safe haven currency, the dollar remained under heavy pressure on Thursday, dropping to a record low against the Swiss franc.
The buck also fell sharply against the euro amid growing speculation that the Federal Reserve is determined to stick with its $600 billion asset purchase program through the first half of the year.
Meanwhile, the European Central Bank is expected begin setting the table for upcoming interest rate hikes in an effort to stave off inflation.
Crude prices jumped above $100 a barrel in New York this week, and many economists expect companies to begin passing along input costs to their customers in the next few months.
The dollar fell to a fresh all-time low of CHF 0.9238 versus the Swiss franc. Traders are putting a premium on Switzerland’s stable economy and banking system amid ongoing turmoil in the Arab world.
Safe haven seekers have also bid up the yen at the dollar’s expense. The buck dropped to a 3-week low of Y81.64, nearing November’s 15-year low of Y80.22
Versus the euro, the buck dropped to a 3-week low of $1.3806, having dropped 9 cents since January 10.
In economic news from the U.S., weekly figures from the Labor Department showed initial jobless claims slipped by 22,000 to 391,000 from the previous week’s revised figure of 413,000.
Economists had expected jobless claims to edge down to 405,000 from the 410,000 originally reported for the previous week.
New home sales in the U.S. fell by much more than anticipated in the month of January, according to a report released by the Commerce Department on Thursday.
The report showed that new home sales fell by 12.6 percent to an annual rate of 284,000 in January from the revised December rate of 325,000.