The dollar index (DXY00) Thursday rose by +0.15%. The dollar on Thursday recovered from early losses and rallied to a 1-week high after better-than-expected US economic reports bolstered the outlook for the Fed to delay interest rate cuts further. Weekly US jobless claims fell more than expected and the May S&P manufacturing PMI unexpectedly increased, which are hawkish factors for Fed policy. The dollar extended its advance Thursday afternoon when stocks gave up an early rally and turned lower, sparking liquidity demand for the dollar.
The US Apr Chicago Fed national activity index fell -0.19 to -0.23, weaker than expectations of +0.13.
