30 April 2009 -
Dollar soars vs. yen on recovery hopes
The U.S. dollar surged against the Japanese yen and other major currencies on Thursday after data showed a decline in jobless claims, signaling that the worst of the American recession may be over.
The government reported that initial jobless claims fell 14,000 to 631,000 during the week ended April 25.
A moderation in claims could mean that the pace of deterioration in the labor market is slowing, even though that market is still weak.
The dollar index /quotes/comstock/11j!i1:dx\y (DXY 79.29, -0.34, -0.43%) , a measure of the greenback against a trade-weighted basket of six major currencies, rose to 84.764, up from 84.573 in North American trade late Wednesday.
The greenback rose 1% against the Japanese currency to 98.55 yen.
The yen, typically seen as a safe haven, was hurt by investors' willingness to buy riskier assets. The dollar is also traditionally a safe-haven currency.
"The dollar's safe-haven status is playing second fiddle to the market's demand for the greenback" today, said Kathy Lien, director of currency research at GFT.
The prior weakness of the U.S. dollar was primarily due to month-end fixings, and because it is the last trading day of April, dollar negative fixing flows have come to an end, Lien said.