The dollar index (DXY00) today is up by +0.02%. The dollar today recovered from a 5-week low and moved slightly higher after US weekly initial unemployment claims unexpectedly fell to a 3-year low, which was hawkish for Fed policy and positive for the dollar.
The dollar initially fell to a 5-week low in overnight trade after the yen rallied following a Reuters report that the Japanese government would tolerate a BOJ rate hike later this month. The dollar is also being pressured by expectations that the Fed will cut interest rates at next week's FOMC meeting.
