The dollar index (DXY00) rallied to a 3.5-week high on Thursday and finished up by +0.19%. Stronger-than-expected US economic news on Thursday boosted the dollar, as weekly jobless claims fell to a 5-week low, and the Feb Philadelphia business outlook survey unexpectedly rose to a 5-month high. The dollar also has some positive carryover from Wednesday, when the hawkish minutes of the Jan 27-28 FOMC meeting stated that "several" officials suggested the Fed may need to raise interest rates if inflation stays above its goal. In addition, hawkish comments from Fed Governor Stephen Miran boosted the dollar when he said he now sees a "less accommodative" interest rate path for the US.
Limiting gains in the dollar on Thursday was the widening of the US Dec trade deficit to a 5-month high and the unexpected decline in Jan pending home sales.
