The dollar index (DXY00) on Thursday fell to a 2-1/2 week low and finished down -0.04%. Thursday’s rally in the S&P 500 to a new record high reduced liquidity demand for the dollar. Losses in the dollar were limited by signs of strength in the U.S. economy after weekly U.S. jobless claims unexpectedly fell to a 5-week low, and the Feb S&P manufacturing PMI expanded at the strongest pace in 17 months.
U.S. weekly initial unemployment claims unexpectedly fell -12,000 to a 5-week low of 201,000, showing a stronger labor market than expectations of an increase to 216,000.
