The dollar index (DXY00) on Thursday fell to a 2-1/2 week low and finished down by -0.40%. The dollar was weighed down Thursday by a decline in T-note yields. Also, Thursday’s stock rally reduced the liquidity demand for the dollar. In addition, the dollar had a negative carryover from Wednesday when Fed Chair Powell said it was “unlikely” that the Fed's next policy move would be to raise interest rates. Thursday’s US economic reports were dollar-friendly, showing weekly jobless claims rose less than expected, and Q1 unit labor costs rose more than expected, hawkish factors for Fed policy.
Weekly US initial unemployment claims were unchanged at 208,000, showing a stronger labor market than expectations of an increase to 211,000.
