U.S. Dollar Drops As Jobless Claims Rise More Than Expected

The U.S. dollar moved lower against its major counterparts in the New York session on Thursday, as strong jobless claims data raised the prospect of interest rate cuts this year.

Data from the Labor Department showed that initial jobless claims climbed to 221,000 in the week ended March 30, an increase of 9,000 from the previous week's revised level of 212,000.

Economists had expected jobless claims to inch up to 214,000 from the 210,000 originally reported for the previous week.

A separate report released by the Commerce Department showed the U.S. trade deficit unexpectedly widened in the month of February.

The Commerce Department said the trade deficit increased to $68.9 billion in February from a revised $67.6 billion in January.

Economists had expected the trade deficit to narrow to $67.0 billion from the $67.4 billion originally reported for the previous month.

The currency dipped on Wednesday, amid weaker-than-expected ISM services PMI data and Federal Reserve Chair Jerome Powell's remarks that U.S. rates will be cut this year.

The FOMC chief said recent high inflation readings did not "materially change" the broader outlook.

The greenback declined to 2-week lows of 1.0876 against the euro and 1.2683 against the pound, off its early highs of 1.0831 and 1.2644, respectively. The greenback is seen finding support around 1.10 against the euro and 1.28 against the pound.

The greenback dropped to 2-week lows of 0.6619 against the aussie and 1.3477 against the loonie, from its early highs of 0.6557 and 1.3528, respectively. The greenback may locate support around 0.68 against the aussie and 1.32 against the loonie.

The greenback reached as low as 151.50 against the yen. If the currency drops further, it may find support around the 146.00 area.

The greenback touched 0.9022 against the franc, setting a 3-day low. The greenback is likely to find support around the 0.89 level.

The greenback touched 0.6046 against the kiwi, its lowest level since March 22. On the downside, 0.62 is likely seen as its next support level.