The dollar index (DXY00) fell by -0.36% on Thursday and held just above Wednesday's 4-week low. Weaker-than-expected US economic news on Thursday weighed on the dollar. Q4 GDP was unexpectedly revised lower, Feb personal income and spending rose less than expected, and weekly jobless claims rose more than expected to an 8-week high. The dollar fell to its low on Thursday in hopes of de-escalation of hostilities in the Middle East when Axios reported that direct negotiations between Israel and Lebanon will begin next week in Washington.
Losses in the dollar were limited as doubts about the sustainability of the US-Iran ceasefire boosted some safe-haven demand for the dollar. Also, Thursday's +3% jump in WTI crude oil prices raises inflation expectations, hawkish for Fed policy, and supportive of the dollar.
