The dollar index (DXY00) Thursday rose by +0.47%. The dollar posted moderate gains Thursday after bond yields rose on hawkish comments from Kansas City Fed President Schmid who said he wants to see more economic data before supporting any decision to begin cutting interest rates. Also, short covering ahead of Fed Chair Powell’s comments at the Fed’s annual symposium at Jackson Hole, Wyoming on Friday supported the dollar.
The dollar remained higher after weekly US continuing unemployment claims rose less than expected, signaling a stronger labor market that is hawkish for Fed policy. However, gains in the dollar were limited after the US manufacturing PMI index fell to its weakest level in 8 months. Also, dovish comments from Philadelphia Fed President Harker and Boston Fed President Collin were negative for the dollar when they said they supported a Fed rate cut next month.
