The dollar rebounded from 10-week low against the euro after the latest jobless claims fared better than expected and suggested the labor market was holding up solidly in the face of an otherwise sluggish economy.
Jobless claims inched up to 265,000, holding in close range of last week's 15-year low of 262,000. That was better than forecasts of 280,000. Jobless claims have held below 300,000 for nine consecutive weeks, signaling a strengthening trend in the labor market.
Key for the dollar and outlook for higher U.S. interest rates will be the outcome of nonfarm payrolls on Friday which will offer the first major look at the economy in the second quarter.
