Summary The dollar strengthened against the euro Thursday as traders weighed mixed US data.
NEW YORK (AFP) - The dollar strengthened against the euro Thursday as traders weighed mixed US data against the context of a modestly improving economy that is faring far better than the eurozone.
The euro extended its losses, at one point falling to $1.2697, its weakest level since mid-November 2012. The currency shared by the eurozone s 18 nations ended the day at $1.2750, down from $1.2781 a day ago.
"The dollar stuck near fresh highs as general economic optimism remained intact despite a mixed bag of data," said Joe Manimbo, senior market analyst at Western Union Business Solutions.
Jobless claims rose but held below 300,000, and the four-week moving average continued to fall, a fresh confirmation of the improving trend in the jobs market.
Jennifer Lee at BMO Economics said the data was "evidence that US employers continue to hire."
In the US manufacturing sector, durable goods orders were dragged down by volatile aircraft orders in August after an extra-strong July, but the overall growth trend remained strong.
National Australia Bank analysts said the euro s dive below $1.28 was "not surprising" given the eurozone s poor economy. The European Central Bank s lean towards using asset purchases to support the anemic recovery added to the trend.
"There was no economic data to trigger the move. Rather the selling was simply the resumption of the overall dollar rally as Mario Draghi continued to stress the idea that ECB policy is going to become even more accommodative over the near-term horizon," said Boris Schlossberg at BK Asset Management.
