The dollar index (DXY00) on Thursday fell by -0.75%. The dollar was under pressure Thursday after the British pound, the euro, and the Japanese yen all rallied following hawkish comments from the BOE, ECB, and BOJ on the inflationary effects of soaring energy prices from the war in Iran. Losses in the dollar accelerated on Thursday after the US Jan new home sales fell more than expected to a 3.25-year low.
Thursday's stock market weakness boosted some liquidity demand for the dollar. Also, Thursday's US economic news on weekly jobless claims and the Mar Philadelphia Fed business outlook survey were hawkish for Fed policy. The dollar also has carryover support from Wednesday, when Fed Chair Powell said there will be no Fed rate cut unless there is progress on inflation.
