The US dollar, euro and kiwi slid on Thursday as oil prices climbed. The dollar’s slide came despite an upbeat jobless claims report.
The US Department of Labor said initial jobless claims fell by 12,000 to 234,000 last week, down from 246,000 the previous week. Analysts were expecting claims to increase to 250,000.
USD/CAD fell to 1.3106 in early morning trade, falling to its lowest level since Tuesday.
Sentiment on the dollar continued to wane among increased concerns that the Trump administration would prefer a weaker dollar. Trump and his senior trade advisor lashed out at China, Germany and Japan, claiming they were devaluing their currencies to hurt the United States.
Against the yen, the dollar fell 0.4%. Analysts suggest that the pair could weaken further after President Trump’s meeting with Japanese Prime Minister Shinzo Abe during a two-day summit this weekend.
The euro declined 0.2% to $1.068 against the dollar. The currency remains under pressure over concerns of a hard Brexit and France’s election resulting in a win for far-right conservative Marine Le Pen.
Marine Le Pen appears to be set to win the first round of the presidential election in April. Other polls indicate that she may lose to centrist Emmanuel Macron.
Francois Fillon, the conservative favorite, was knocked out of the first round after news broke of a scandal.
The New Zealand dollar saw the biggest decline in FX trade among all major currencies, falling nearly one percentage point. The dip came after the central bank signaled that tightening may still be two years away.
The bank held rates at 1.75% as expected. Governor Graeme Wheeler cited protectionist policies from the US putting the New Zealand economy at risk. Wheeler said rates could stay at its current level for a minimum of two years.
The New Zealand dollar declined 0.8% to $0.7208, falling from a three-month high of $0.7375 reached earlier in the week.
The Australian dollar, meanwhile, fell 0.3% to 0.7199.
The National Australia Bank said its business confidence fell to 5 last quarter from a 6 in the third quarter.
Meanwhile, the Canadian dollar strengthened against its U.S. counterpart, boosted by higher oil prices after an unexpected decline in U.S. inventories.
The Canadian dollar was also higher against the euro, with EUR/CAD falling 0.43% to 1.4000.
Statistics Canada also reported a 0.1% increase in new housing price inflation for December. The figure missed expectations for a 0.2% increase and followed a 0.2% increase the previous month.