The dollar index (DXY00) rose by +0.26% on Thursday. The dollar rallied on Thursday amid favorable US economic news. Weekly jobless claims rose less than expected, Q2 nonfarm productivity rose more than expected, and Q2 unit labor costs rose less than expected. Gains in the dollar accelerated on Thursday after WTI crude oil prices rose more than +2%, raising inflation expectations and a hawkish factor for Fed policy.
The dollar also found support from Thursday’s Financial Times report that said Fed Chair Warsh is willing to raise interest rates at the September FOMC meeting if inflation firms and market expectations shift further towards tightening in the coming months.
