US Markets Up USD Down

The greenback continued to drop against most major currencies today continuing losses after a two major U.S. economic reports showed jobless claims and durable-goods orders jumped. One positive and the other negative.

The move downward spiral comes the day after the Federal Reserve said interest rates may remain at current levels until late 2014, reducing the appeal of the USD to international investors, regardless of the positive comments about growth and the economy.

The dollar index dropped to 79.248, and is well below its 80.131 level ahead of the Fed’s policy announcement.

In a news conference, Chairman Ben Bernanke said expanding its balance sheet remains an option and the central bank stands ready to ease further if the outlook worsens. Bernanke said it’s too early to say strong growth is here to stay. As for the bonds the Fed already holds, he said sales of those have been pushed back to 2015.

The two reports released in the US today, showed new applications for unemployment climbed sharply last week. Jobless claims climbed by 21,000 to a seasonally adjusted 377,000 in the week ended Jan. 21, the Labor Department said Thursday. Claims from two weeks ago were revised up by 4,000.

The number of claims varies in January due to holiday temporary hiring’s despite government efforts to adjust for seasonal factors.

The markets pay more attention to the four-week average which showed claims fell slightly, down 2,500 to 377,500.

The second report release was on durable goods, where stronger orders for airplanes and machinery translated into a better-than-expected 3.0% increase in durable-goods orders in December.

As investors look closely through the recent data for any sign of improvement, the manufacturing sector remains a decidedly bright spot for the U.S. economy.

Durable goods are defined as big-ticket items such as cars, planes, appliances, furniture and computers designed to last at least three years…

The Fed’s move Wednesday and subsequent remarks by Federal Reserve Chairman Ben Bernanke served to spur risk appetite, lifting commodities and equities while the dollar weakened. The increase in durable goods supports a strong view of US growth. US markets have climbed on the news.