The dollar index (DXY00) Thursday rallied to a 1-week high and rose by +0.57%. A jump in bond yields Thursday supported the dollar. Also, signs of strength in the U.S. labor market are hawkish for Fed policy and bullish for the dollar after weekly initial unemployment claims unexpectedly fell to a 2-month low. In addition, the slump in stocks Thursday boosted the liquidity demand for the dollar.
U.S. weekly initial unemployment claims unexpectedly fell -9,000 to a 2-month low of 228,000, showing a stronger labor market than expectations of an increase to 240,000.
