Dollar Rises as U.S. Equities Climb

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The dollar rose Thursday morning against most world currencies as U.S. stocks rallied. The greenback climbed to 89.23 cents per euro from 89.76 Wednesday, and the U.S. currency also rose against the British pound, which dropped to $1.4543 from $1.4622.

The dollar, along with equities, rose after government data showed that the number of workers filing for initial jobless claims fell to 450,000 last week. The yen strengthened to 120.74 against the dollar, from 121.03 in the prior session. The euro traded at 107.55 yen.

Both the Bank of England and the European Central Bank announced half-point reductions in their key lending rates Thursday, with the BOE dropping its rate to 4% and the ECB lowering to 3.25%. The cuts were larger than expected and reflected increased economic risk in a low-inflation environment, the banks said.