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The dollar index (DXY00) rose to a 1-week high on Thursday and finished up by +0.03%. The dollar found some support on Thursday after weekly US jobless claims unexpectedly declined, signaling strength in the labor market. Also, hawkish comments on Thursday from Kansas City Fed President Jeff Schmid and Cleveland Fed President Beth Hammack supported the dollar when they said current Fed policy isn’t in restrictive territory. However, the dollar gave up nearly all of its gains as stocks rallied, which curbed liquidity demand for the dollar.
US weekly initial unemployment claims unexpectedly fell -4,000 to 203,000, showing a stronger labor market than expectations of an increase to 208,000.
Kansas City Fed President Jeff Schmid said current Fed policy is not restraining the economy at a time when inflation…
