U.S. Dollar Falls As Economic Growth Slows More Than Expected

The U.S. dollar declined against its most major counterparts in the New York session on Thursday, after a data showed that the nation's economic growth fell short of economist estimates in the fourth quarter of 2024.

Gross domestic product shot up by 2.3 percent in the fourth quarter after surging by 3.1 percent in the third quarter. Economists had expected GDP to jump by 2.6 percent.

Separate data showed that first-time claims for U.S. unemployment benefits pulled back more than expected in the week ended January 25.

Initial jobless claims fell to 207,000, a decrease of 16,000 from the previous week's unrevised level of 223,000. Economists had expected jobless claims to slip to 220,000.

The greenback touched 1.0467 against the euro and 1.2476 against the pound, setting 2-day lows. The greenback is poised to challenge support around 1.07 against the euro and 1.26 against the pound.

The greenback retreated against the aussie, the kiwi and the loonie and was trading at 0.6227, 0.5648 and 1.4419, respectively. The greenback is seen finding support around 0.65 against the aussie, 0.60 against the kiwi and 1.37 against the loonie.

The greenback fell to a 3-day low of 153.78 against the yen. The next possible support for the greenback is seen around the 147.00 level.

In contrast, the greenback recovered against the franc and was trading at 0.9089. The next possible resistance for the currency is seen around the 0.92 level.