The dollar index (DXY00) on Thursday fell by -0.17%. The dollar was under pressure as Thursday’s stock rally reduced liquidity demand for the dollar. Also, Thursday’s benign inflation news may keep the Fed from tightening monetary policy, a negative for the dollar, after the May core PCE price index, the Fed’s preferred inflation gauge, rose as expected.
Losses in the dollar were limited, as Thursday’s US economic news showed strength in the US economy. Q1 GDP was revised upward, weekly jobless claims fell more than expected, and May personal spending and income, and May capital goods new orders rose more than expected.
