Dollar Falls as Weak Economic Data Erode Bets on Fed Rate Hike

---

The dollar fell as tepid economic reports damped demand for the currency after minutes from the Federal Reserve’s last policy meeting left bulls with little to cheer.

The U.S. currency snapped three days of gains versus the euro after housing and jobs data missed forecasts. The greenback weakened versus most of its major peers as traders digested minutes released Wednesday that suggest the Fed is unlikely to increase rates in June, while remaining open to tightening later this year.

The dollar weakened 0.2 percent to $1.1118 per euro as of 3:50 p.m. in New York, after touching $1.1062 on Wednesday, its strongest level since April 29.

The U.S. currency fell 0.3 percent to 120.97 yen, halting a five-day gain.

Source: Bloomberg

Gold Futures Fell to One-Week Low as U.S. Jobless Claims Decline

---

Gold futures fell to a one-week low after the average number of Americans filing for unemployment benefits in the past four weeks dropped to a 15-year low, reviving concern that interest rates will increase.

The average dropped to 266,250 in the period ended May 16 from 271,750, government figures showed Thursday. On Wednesday, holdings in exchange-traded products backed by gold dropped to the lowest since January, according to data compiled by Bloomberg.

Gold advanced on Wednesday after minutes from the Federal Reserve’s last meeting showed that officials in April didn’t expect to raise their benchmark rate at the next gathering in June. Higher borrowing costs drive investors to favor assets that pay interest, including new bonds, curbing the appeal of the metal, which generally offers returns only through price gains.

Gold futures for June delivery fell 0.4 percent to settle at $1,204.10 an ounce at 2:13 p.m. on the Comex in New York. The price touched $1,200.80, the lowest for a most-active contract since May 13.

Silver futures for July delivery rose 0.1 percent to $17.132 an ounce.

Source: Bloomberg

U.S. Stocks Rise to Records Amid Mixed Data on Economic Growth

---

U.S. stocks advanced, with the Standard & Poor’s 500 Index rising to a record, amid better-than-forecast results from Salesforce.com Inc. and Best Buy Co. while gauges on the strength of economic growth were mixed.

The S&P 500 rose 0.2 percent to 2,131.03 at 4 p.m. in New York, its fourth all-time high in the last six sessions.

As Federal Reserve policy makers debate the timing on their first interest rate increase since 2006, the data they’re dependent on for their decision continues to provide mixed signals.

Source: Bloomberg

U.S. Stocks, Treasuries Rise as Data Show Uneven Economic Growth

---

U.S. stocks rose to record levels and Treasuries gained a second day as economic data showing uneven growth added to speculation the Federal Reserve won’t rush to raise interest rates. Crude oil rallied.

The Standard & Poor’s 500 Index advanced 0.3 percent to a record at 12:36 a.m. in New York. The Nasdaq Composite Index jumped 0.4 percent to an all-time closing high. The yield on 10-year Treasury notes fell four basis points to 2.21 percent, while the Bloomberg Dollar Spot Index erased losses. The Stoxx Europe 600 Index added 0.4 percent. Oil climbed 3.1 percent.

Purchases of previously owned homes unexpectedly fell in April, a sign the industry’s recovery remains uneven, while U.S. jobless claims over the past four weeks dropped to a 15-year low. Federal Reserve minutes on Wednesday signaled officials are unlikely to raise rates in June, while keeping open the option to tighten this year.

Fed officials last month didn’t expect to raise rates at their June meeting even as they concluded that a first-quarter economic slowdown was unlikely to persist, the minutes showed. Fed Chair Janet Yellen is due to give a speech Friday on the economic outlook.

Source: Bloomberg