The dollar index (DXY00) Thursday rose by +0.43% and posted a new 1-year high. Thursday’s strength in US economic news may keep the Fed from aggressively cutting interest rates and is positive for the dollar. Weekly jobless claims fell to a 5-1/2 month low, and Oct PPI rose more than expected, hawkish factors for Fed policy. Gains in the dollar accelerated Thursday afternoon after Fed Chair Powell said there’s no need for the Fed to hurry interest rate cuts.
US weekly initial unemployment claims fell -4,000 to a 5-1/2 month low of 217,000, showing a stronger labor market than expectations of 220,000.
