Initial jobless claims fall in line with forecasts last week

The number of Americans filing for unemployment benefits dropped from five-week highs last week, official figures revealed on Thursday. According to the US Department of Labor, initial jobless claims fell to 258,000 in the week ending December 2 after rising to 268,000 in the preceding week. That was in line with analysts' projections. Initial claims remained below the 300,000 level for the 92nd straight week, the longest streak since 1973. Meanwhile, the four-week moving average of claims, which is considered a better measure of labor market trends, advanced 1,000 to 252,500 in the reported period. Many economists believe the US economy is at or near full employment, with the unemployment rate at 4.6%. Thursday's  report also showed that the number of so-called continuing claims decreased 79,000 to 2.01 million during the week ended November 26, while their four-week moving average dropped 9,5000 to 2.03 million. The Federal Reserve is widely expected to raise its key interest rate by 25 basis points at its two-day policy meeting next week. The last time the Fed increased its benchmark overnight rate was in December last year, when the rate was increased from 0.25% to 0.5%. After the release, the US Dollar rose against other major currencies.