The dollar index (DXY00) on Thursday rose by +0.35% and posted a 2-1/4 month high. Thursday’s better-than-expected U.S. economic reports on weekly jobless claims and Q1 GDP were hawkish for Fed policy and supportive of the dollar. Also, the jump in the 10-year T-note yield Thursday to a 2-1/2 month high strengthened the dollar’s interest rate differentials and was bullish for the dollar. In addition, concern about a slowdown in China’s recovery knocked the yuan down to a 5-3/4 month low against the dollar.
U.S. weekly initial unemployment claims rose +4,000 to 229,000, showing a stronger labor market than expectations of 245,000.
