The dollar index (DXY00) today is down -0.04%. Today’s smaller-than-expected decline in weekly US jobless claims and the larger-than-expected decline in Jan existing home sales knocked T-note yields lower and are weighing on the dollar. Also, strength in the Chinese yuan is pressuring the dollar, as the yuan rallied to a new 2.5-year high today. Losses in the dollar are limited amid some carryover support from Wednesday’s better-than-expected US Jan payroll report that dampened speculation of additional Fed interest rate cuts.
US weekly initial unemployment claims fell -5,000 to 227,000, showing a slightly weaker labor market than expectations of 223,000.
