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Barchart
Barchart
Rich Asplund

Dollar Recovers Early Losses as Stocks Retreat

The dollar index (DXY00) on Thursday rose by +0.14%.  The dollar recovered from early losses on Thursday and moved higher after stocks gave up early gains and turned lower, boosting liquidity demand for the dollar.  The dollar also found support on Thursday’s dollar-friendly news on weekly jobless claims, Q1 nonfarm productivity, Q1 unit labor costs, construction spending, and consumer credit.  In addition, hawkish comments from Boston Fed President Susan Collins and Cleveland Fed President Beth Hammack were supportive of the dollar when they said they favored keeping interest rates on hold. 

The dollar initially moved lower on Thursday amid optimism that a peace deal between the US and Iran is imminent, which curbed safe-haven demand for the dollar today.  Also, Thursday’s early rally in the S&P 500 to a new record high dampened liquidity demand for the dollar. 

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