(RTTNews) - The dollar extended its recent run to the upside versus the sterling and charged back towards parity with its Canadian counterpart on Thursday. Traders reacted to a slew of economic data from around the world, including a pivotal inflation reading from the US. The Department of Labor released its report on consumer price inflation in the month of October on Thursday, showing that consumer price growth came in line with economist estimates due to a sharp rise in energy prices. The dollar gained on the euro Thursday in New York, rising to 1.4604 in early dealing before moving roughly sideways for the remainder of the session. The dollar has been able to stabilize since hitting a record low of 1.4751 last week. The dollar drifted higher over the course of Thursday's session versus the struggling sterling, rising to a 3-week high of 2.0430. With the advance, the greenback moved further away from last week's 26-year low of 2.1160. U.K. retail sales posted its first decline in nine months, data revealed Thursday, suggesting higher interest rates are forcing consumers to tighten their belts. The dollar eased slightly versus the yen on Thursday, slipping to 110.20 to inch closer to a year and a half low from early in the week. The dollar began the session at around 111.50 but softened as traders moved into the lower-yielding safer yen amid diminished risk appetite. The greenback jumped to a 5-week high versus the Canadian dollar on Thursday, continuing its march back towards parity. The dollar soared to .9862 by the end of the day, pulling further away from last week's modern-era low of .9050. Thursday morning, Statistics Canada released the results of its survey of Canadian manufacturing in the month of September, showing that Canadian manufacturing sales fell more than economists had been expecting compared to the previous month.
November 15, 2007 4:03 PM