The dollar index (DXY00) on Thursday fell by -0.40%. The dollar was under pressure Thursday from a stronger yuan, which rose to a 9.5-month high against the dollar. The dollar also remains under pressure due to concern over the Fed's independence and fears about capital flight with President Trump's move to fire Fed Governor Lisa Cook. If Mr. Trump succeeds in firing Fed Governor Cook, foreign investors may lose faith in the Fed and the dollar and swap their dollar assets into non-dollar investments. Losses in the dollar accelerated on Thursday when the S&P 500 reached a new record high, which reduced liquidity demand for the dollar.
The dollar found some support Thursday on signs that the US economy is holding up after an upside revision showed Q2 GDP expanded more than expected. Also, concerns about the US labor market eased after weekly initial unemployment claims fell as expected.
