The dollar index (DXY00) Thursday recovered from early losses and ended the day mildly higher by +0.27%. The dollar found support Thursday on hawkish comments from Fed Chair Powell, who said policymakers were “not confident” they had raised interest rates enough to bring inflation back down to the Fed’s 2% target. The dollar Thursday initially moved lower on strength in the euro, and after weekly U.S. continuing unemployment claims rose more than expected to a 6-1/2 month high, a sign of labor market weakness that was dovish for Fed policy.
Fed Chair Powell said policymakers are "not confident" they have achieved the stance to return inflation to the Fed's 2% target, and they "won't hesitate" to tighten more if appropriate.
