Investing.com - The dollar rose to two week highs against the weaker yen on Thursday after a report showed that U.S. initial jobless claims rose last week, but the underlying trend indicated improving labor market conditions.
USD/JPY was up 0.74% to 107.93, not far from session highs of 108.02, the most since October 10.
The dollar was boosted after the Department of Labor reported that the number of Americans filing for initial jobless benefits in the week ending October 18 increased by 17,000 to a seasonally adjusted 283,000 from an upwardly revised 266,000 in the previous week.
Economists had expected jobless claims to rise by 16,000 to 282,000.
The four-week average fell to 281,000, the lowest since May 2000, while continuing claims, which counts people receiving benefit for at least the second month in a row, also hit a 14-year low, of 2.35 million.
Market sentiment was also boosted as upbeat corporate earnings reports sent Wall Street higher at the open and soothed investor jitters over slowing global economic growth.
Fears that a slowdown in global growth could act as a drag on the U.S. economy have prompted investors to reassess expectations on how soon the Federal Reserve will raise interest rates after its stimulus program winds up later this month.
The yen was also lower against the euro, with EUR/JPY advancing 0.76% to 136.55.
The single currency found support after data earlier Thursday showed that the euro zone saw a marginal uptick in business activity in October.
Research group Markit said its preliminary euro zone manufacturing purchasing managers’ index ticked up to 50.7 this month from a final reading of 50.3 in September. Analysts had expected the index to slide to 49.9.
The region’s services PMI held steady at 52.4, slightly above expectations of 52.0.
Germany’s manufacturing PMI rebounded to 51.8 from 49.9 in September, showing a return to growth.