U.S. Dollar Advances Amid Higher Treasury Yields

The U.S. dollar climbed against its most major counterparts in the New York session on Thursday, as treasury yields rose amid uncertainty about the Federal Reserve's interest rate path and U.S. President-elect Donald Trump's tariff threats.

Markets focus on the likelihood of fewer rate cuts from the Fed.

Trump administration's policies stoked concerns about inflation.

On the U.S. economic front, the Labor Department released a report showing first-time claims for U.S. unemployment benefits unexpectedly edged slightly lower in the week ended December 21st.

The report said initial jobless claims slipped to 219,000, a decrease of 1,000 from the previous week's unrevised level of 220,000. Economists had expected jobless claims to rise to 224,000.

The greenback rose to a 6-day high of 1.2500 against the pound and more than a 5-month high of 158.08 against the yen, off its early lows of 1.2547 and 157.29, respectively. The next possible resistance for the currency is seen around 1.24 against the pound and 161.00 against the yen.

The greenback touched 0.6215 against the aussie and 0.5621 against the kiwi, setting 6-day highs. The currency is poised to challenge resistance around 0.61 against the aussie and 0.55 against the kiwi.

The greenback edged up to 0.9010 against the franc. Immediate resistance for the currency is seen around the 0.92 level.

Against the loonie, the greenback advanced to 1.4416. The currency is likely to challenge resistance around the 1.47 level.

In contrast, the greenback fell to a 2-day low of 1.0422 against the euro. The currency is seen finding support around the 1.06 level.