• The dollar sank to a five-week low on Thursday while U.S. bond yields rose as investors digested the recent U.S. interest rate increase and indications there would be no pick-up in the pace of monetary tightening.
U.S. Treasury yields rose from more than one-week lows on the view that they had fallen too sharply in the prior session after the Fed maintained its outlook for only a gradual pace of interest rate increases this year.
Prices on benchmark 10-year Treasuries US10YT-RR fell 8/32 to yield 2.531 percent, up from 2.504 percent late on Wednesday.
The dollar index .DXY, which tracks the greenback against a basket of six trade-weighted peers, retreated 0.1 percent to 100.26. It hit a five-week low on Thursday, and is down almost 1 percent for the week.
The euro EUR=EBS touched its highest level in 5-1/2-weeks on Friday. It was fractionally higher at $1.07715 in early trade, after two days of strong gains, and set to end the week up 0.9 percent.
• U.S. homebuilding jumped in February as unseasonably warm weather boosted the construction of single-family houses to near a 9-1/2-year high, suggesting the economy remained on solid ground despite an apparent slowdown in the first quarter.
Housing starts increased 3.0 percent to a seasonally adjusted annualized rate of 1.29 million units last month, the Commerce Department said. Homebuilding was up 6.2 percent compared to February 2016, suggesting housing would contribute to growth this year.
Single-family homebuilding, which accounts for the largest share of the residential housing market, surged 6.5 percent to a 872,000-unit pace, the highest level since October 2007.
• In a separate report on Thursday, the Labor Department said initial claims for state unemployment benefits dropped 2,000 to a seasonally adjusted 241,000 for the week ended March 11.
It was the 106th straight week that claims remained below 300,000, a threshold associated with a healthy labor market. That is the longest stretch since 1970, when the labor market was much smaller.
• A third report from the Philadelphia Fed showed its manufacturing activity index fell to a reading of 32.8 this month from 43.3 in February. However, the survey's new orders gauge hit its highest level since December 1987.
• President Donald Trump's first budget outline, calling for a security-heavy realignment of federal spending, drew resistance on Thursday from his fellow Republicans in the U.S. Congress as many balked at proposed deep cuts to diplomatic and foreign aid programs.
Conservatives have plenty to like in the White House plan, with its 10 percent increase in military spending next year and beefed-up funding to help deport more illegal immigrants and build a wall on the border with Mexico.
The administration asked Congress for a 28 percent, or $10.9 billion, cut in State Department funding and other international programs to help pay for a 10 percent, $54 billion hike in military spending next year.
• Oil prices declined on Thursday after data showed high level of U.S. crude inventories.
The West Texas Intermediate for April Delivery erased 0.11 U.S. dollar to settle at 48.75 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery decreased 0.07 dollar to close at 51.74dollars a barrel on the London ICE Futures Exchange.
Reference: Reuters, CNBC, Xinhua
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