NEW YORK—The dollar dropped after economic indicators pointed to a dismal employment picture and slowing economic growth.
First-time claims for unemployment benefits jumped 25,000 to 429,000, indicating employers might have slowed their hiring recently. Economists were expecting claims to fall to 395,000.
At the same time, gross domestic product rose at a modest 1.8% pace in the first quarter, matching economists’ forecasts. However, the pace of expansion is much weaker than it was at the end of 2010, when the economy was growing at 3.1% pace.