29 March 2007, 18:02  Dollar climbs on upward GDP revision

The dollar is split early Thursday in New York, up against the yen but slightly lower against the euro following a surprise upward revision in fourth-quarter U.S. growth data. Gross domestic product rose at a 2.5% annual rate October through December, the Commerce Department said, revised up from an estimate of 2.2% and surprising the market, which had expected no revision. The greenback jumped on the back of the data, climbing to an intra-session high of Y117.82, while the euro slipped to $1.3319 and continues to fluctuate. Better-than-expected weekly employment data also helped the dollar, as U.S. jobless claims reached their lowest level since mid-January last week. With Thursday's U.S. data releases out of the way, the market will digest comments from Richmond Fed President Jeffrey Lacker and Minneapolis Fed President Gary Stern. The currency market enjoyed calmer waters overnight, after digesting Federal Reserve Chairman Ben Bernanke's Congressional testimony Wednesday which indicated that the central bank has not yet abandoned its tightening bias. "High-yielding currencies and equities rebounded during Asian and European trading, with the market seemingly fading (out) Fed Chairman Bernanke's testimony and growing tensions between Great Britain and Iran," Olivier Desbarres, currency analyst at Credit Suisse noted.

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