The US Labor Department reported yesterday that new applications for jobless benefits rose to a seasonally adjusted 542,000, from 515,000 in the previous week. The reading last week was a record high in 16 years, while analysts expected it would drop to 505,000.

The four-week average of claims rose to 506,500, the highest in more than 25 years. The number of people continuing to claim unemployment insurance rose to more than four million, the highest since December 1982.

The US Federal Reserve released projections on Wednesday that the jobless rate will climb to 7.1 percent to 7.6 percent next year. The unemployment rate stood at 6.5 percent in October. Some analysts expected it would jump to 8 percent by the end of 2009.

The Conference Board reported that US leading economic index fell 0.8 percent in October, worse than the 0.6 percent decrease expected by analysts. The index is designed to predict economic activity six to nine months in to the future.

The euro bought US$1.2501 in late New York trading compared with US$1.2602 it bought late Wednesday. The pound fell to US$1.4812 from US$1.5025.

The dollar rose to 1.2233 Swiss francs from 1.2102 Swiss francs, and fell to 94.79 Japanese yen from 96.37 Japanese yen. It rose to1.2842 Canadian dollars from 1.2483 Canadian dollars.