The dollar index (DXY00) on Thursday rose by +0.17% after mixed US economic reports. The upward revision to Q2 nonfarm productivity and the downward revision to Q2 unit labor costs were supportive for the dollar. The dollar also found support after the Aug ISM services index expanded at its fastest pace in six months.
However, the smaller-than-expected increase in the Aug ADP employment change and rise in weekly jobless claims to a 10-week high were dovish for Fed policy and bearish for the dollar. The dollar was also undercut by Thursday’s -5 bp decline in the 10-year T-note yield to 4.16%, which hurt the dollar’s interest rate differentials.
