The dollar index (DXY00) Thursday rose by +0.04%. The dollar Thursday recovered from early losses and moved higher after T-note yields erased an early decline and moved higher. Also, weakness in the yen supported the dollar after the yen on Thursday fell to a 5-week low against the dollar. The dollar initially moved lower Thursday on the benign U.S. Jul CPI report and jump in weekly jobless claims to a 5-week high, which is dovish for Fed policy. Also, a rally in stock today has reduced the liquidity demand for the dollar.
U.S. weekly initial unemployment claims rose +21,000 to a 5-week high of 248,000, showing a weaker labor market than expectations of 230,000.
