LONDON (AFP) - The euro jumped to its strongest reading in nine months against the dollar Thursday, as investors were emboldened to move into riskier currencies, before slipping back.
The single European currency in late day trade was at 1.4561 dollars, against 1.4564 late Wednesday in New York.
The dollar was meanwhile trading at 91.92 yen, down from 92 on Wednesday.
The euro at one point rose to 1.4607 dollars, its best reading in nine months, after positive US employment data encouraged investors to move into currencies seen as riskier than the dollar -- such as the euro.
In Washington the government said new jobless compensation claims fell to 550,000 in the past week, in a sign of further healing in the critical labour market.
The figure for weekly claims was better than analyst expectations for 560,000.
James Hughes of CMC Markets said the earlier slide in the dollar "came after another wave of upbeat economic readings sparked yet more interest in riskier assets."
He noted that the latest survey by the US Federal Reserve found "that many people have a 'cautiously optimistic' view on the economy."
"The continued good feeling is still taking its toll on the greenback and in turn this weakness is papering over the cracks in many other currencies, most notably the pound."
Added Jennifer Lee of BMO Capital Markets: "The (job) claims numbers are encouraging and suggest that the painful pace of job cuts will continue to ease, slowly."
The euro's gains were later pared, in line with a weak performance on US and European equity markets.
"Today's falls could just be put down to a degree of profit taking as traders get a little nervous ... after the strong recent run," said analyst Jimmy Yates, also of CMC Markets.
But at City Index Nick Serf said the declines on Thursday were unlikely to signal the start of a sustained fall.
"Not too much damage has been done to the bullish picture the market has been painting this week," he said.
In London on Thursday, the euro was changing hands at 1.4561 dollars against 1.4564 dollars late on Wednesday, at 133.62 yen (134.03), 0.8740 pounds (0.8802) and 1.5151 Swiss francs (1.5156).
The dollar stood at 91.82 yen (92.00) and 1.0411 Swiss francs (1.0404).
The pound was at 1.6649 dollars (1.6544).
On the London Bullion Market, the price of gold fell to 990.75 dollars an ounce from 999.50 dollars an ounce late on Wednesday.
27.40 (0.24%)
