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Wednesday, June 4, 2008

FOREX-Dollar edges up but recovery looks fragile

.Dollar gains as US jobless claims fall
.Greenback still fragile as oil prices keep rising
.High inflation, low growth raise US stagflation fears
The dollar rose on Thursday, boosted by better-then-expected jobless claims data, but support remained fragile as record high oil prices stoked worries about the health of the U.S. economy.

The U.S. currency got a modest boost against the euro and yen after data showed Americans filed fewer applications for first-time jobless benefits than expected in the latest week.

That helped it reverse some losses suffered after the Federal Reserve on Wednesday downgraded its 2008 growth forecast, and some analysts said it offered a glimmer of optimism for the overall May employment picture.

"The market may begin to fret less over the May non-farm payrolls report," said Ron Simpson, director of currency research at Action Economics in Tampa, Florida. Continued...

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