The dollar index (DXY00) on Thursday rose by +0.23%. The dollar recovered from a 1.5-week low today and turned higher on reports that President Trump was seen as favoring Fed Governor Waller to be the new Fed Chair. The appointment of Waller as Fed Chair would ease market concerns about the Fed Chair being a yes man for President Trump, as Waller said back in April that the Fed's independence is "critical to the well-functioning of the US economy." Higher T-note yields on Thursday also supported the dollar.
The dollar initially moved lower Thursday on a larger-than-expected increase in weekly US jobless claims, a dovish factor for Fed policy. Also, dovish comments from San Francisco Fed President Mary Daly weighed on the dollar when she said it may be appropriate for the Fed to cut interest rates in the "coming months."
