Forex News – Dollar rises after data shows U.S growth rose and jobless claims fell

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The United States Gross Domestic Product (GDP) figures were released today showing the US economy grew faster than had been forecast. GDP jumped 1.3 percent in the second quarter compared with a 1 percent expected gain. This was higher than the first quarter’s increase of only 0.4 percent.

The GDP report from the US Commerce Department showed that growth was helped by an increase in exports and spending on services.

Meanwhile a separate report by the US Labor Department on jobless claims showed a drop last week which was more than expected by economists.

Applications for jobless benefits dropped by 37,000 in the week ended Sept. 24 to 391,000, the fewest since April, figures showed today. Economists forecast 420,000 claims.

The number of people continuing to collect jobless benefits also dropped last week. The number fell by 20,000 in the week ended September 17 to 3.73 million.

President Obama’s $447 billion jobs plan aims to push down the unemployment rate next year by maintaining growth, to avoid dipping back into another recession.

The dollar edged up against the yen and the euro following the better than expected growth data and jobless claims data.