The dollar index (DXY00) rose to a 1.5-week high on Thursday and finished up by +0.23%. Thursday's stock selloff boosted liquidity demand for the dollar. Also, hawkish comments from Fed Governor Lisa Cook supported the dollar when she said she now sees "risks as tilted toward higher inflation."
Gains in the dollar were limited on Thursday amid signs of weakness in the US labor market. Challenger's January job cuts posted their biggest decline for a January since 2009, weekly jobless claims rose more than expected to an 8-week high, and the Dec JOLTS job openings unexpectedly fell to a 5.25-year low, dovish factors for Fed policy.
