Dollar Rises on Recession Fear

NEW YORK, Sept. 22 (Xinhua) -- The U.S. dollar rose against most major currencies in late New York trading on Thursday as Federal Reserve's bleak outlook on economy and poor economic data intensified fears about global economic recession.

The Fed's new stimulus plan on Wednesday failed to lift the markets and disappointed investors, also its bleak view on the economic outlook added on investors'concerns over double-dip recession.

Economic data from Europe was also weak. Germany and France's Purchasing Manager Index (PMI) in Sept. dipped to lowest levels since 2009. While HSBC China Flash PMI showed that China's factory sector contracted for a third consecutive month in Sept..

However, the job data on Thursday came as a relief. The Labor Department said initial jobless claims dropped 9,000 to 423,000 last week. But it is still too early to say the job markets have improved.

Investors rushed out of risky assets and sought for safe-haven investment. The dollar was bolstered by the risk-aversion appetite as the dollar index surged more than 1 percent to 78.41.

In late Thursday trading, the dollar bought 76.40 yen, comparing with 76.62 from late Wednesday, and the euro fell to 1. 3469 dollars from 1.3667.

The British pound also fell to 1.5353 dollars from 1.5578. The dollar rose from 0.8954 Swiss francs to 0.9085, and also rose to 1. 0302 Canadian dollars from 1.0035.