The dollar index (DXY00) Thursday rallied by +0.41% on the sharp +13 bp rise in the U.S. T-note yield to 3.83% s on the hawkish Powell comments, which substantially improved the dollar’s interest rate differentials. The dollar also received a boost from the upward revision in U.S. Q1 GDP to +2.0% (q/q annualized) from +1.3%. The dollar also saw support after the Fed’s bank stress tests gave the largest U.S. banks a clean bill of health, bolstering confidence among foreign investors about the U.S. financial system.
EUR/USD (^EURUSD) fell -0.51%. USD/JPY (^USDJPY) rose +0.22%.
