The dollar index (DXY00) today is up by +0.23% and posted a fresh 2-month high. The dollar is supported by today's US economic news that shows a resilient labor market with sticky price pressures and labor costs, which are hawkish for Fed policy. The dollar also has carryover support from Wednesday, when Fed Chair Powell dampened expectations of a Fed rate cut in September when he said the labor market "looks solid" and a moderately restrictive monetary policy is appropriate due to inflation risks from tariffs.
US weekly initial unemployment claims rose by +1,000 to 218,000, showing a stronger labor market than expectations of 224,000.
