The dollar index (DXY00) Thursday fell to a 1-1/2 week low and finished down by -0.28%. Stagflation concerns weighed on the dollar Thursday after revised US Q1 GDP showed slower-than-expected economic growth, along with persistent price pressures. The dollar initially moved higher Thursday after bond yields jumped when Thursday’s US economic news showed signs of persistent inflation and labor market strength, hawkish factors for Fed policy. Also, Thursday’s slump in stocks initially boosted liquidity demand for the dollar.
US weekly initial unemployment claims unexpectedly fell -5,000 to a 2-month low of 207,000, showing a stronger labor market than expectations of an increase to 215,000.
