The dollar went back on defense versus other currencies Thursday morning, stalling out versus the yen while extending its steep weekly losses versus the euro.
On Wednesday, Japanese officials spent two trillion yen buying up dollars in an effort to weaken their surging currency. The impact was short-lived, as the dollar rose sharply in the first few hours after the intervention, but has since tailed off.
It was the largest ever intervention by the Japanese authorities on behalf of their export-driven economy. Officials in Tokyo suggested they are prepared to intervene yet again, the but the dollar barely budged on that news.
The buck was stuck at Y85.64 this morning, ahead of a slew of economic data from the U.S., highlighted by the latest reading on producer price inflation.
Earlier this week, the dollar touched a 15-year year low of Y82.86.
Meanwhile, the dollar has dropped nearly another penny to a 5-week low of $1.3108 versus the euro. The buck has fallen almost 5 cents since last Friday, with the euro finding broad support amid recent successful bond auctions across the 16-nation euro area.
The buck was stable versus the sterling Thursday morning, holding around $1.5610 after seeing modest losses over the previous few sessions.
Traders considered data showing U.K. retail sales for August fell by 0.5%, slowing down from the 1.1% increase in July. The markets were looking for a modest increase.
Here in the States, the government releases data on producer prices at 8.30 a.m. ET. Economists expect that the headline index to rise by 0.3% following 0.2% gain in the previous month. On the other hand, core producer price index is projected to rise by 0.1% for August following 0.3% increase in the previous month.
The Labor Department will also release its customary weekly jobless claim report for the week ended 11th September. Economists expect jobless claims to increase to 461,000 from 451,000 reported for the previous week.
results of the Philadelphia Federal Reserve’s manufacturing survey for September will be released. Economists expect the diffusion index of current activity or September to come in at 0, following a sharp decline to (minus) 7.1 in the previous month.
In other economic news, RealtyTrac, an online marketplace for foreclosure properties, revealed that foreclosure filings in August grew 4% from the previous month.