The dollar index (DXY00) Thursday rose by +0.07% and posted a 2-month high. The dollar Thursday recovered from early losses and moved higher after the 10-year T-note yield jumped to a 9-3/4 month high. Also, better-than-expected U.S. economic news on weekly jobless claims and the Aug Philadelphia Fed business outlook survey boosted the dollar. In addition, weakness in stocks sparked liquidity demand for the dollar Thursday after the S&P 500 fell to a 7-week low.
Thursday’s U.S. economic news was bullish for the dollar. Weekly initial unemployment claims fell -9,000 to 239,000, showing a slightly stronger labor market than expectations of 240,000. Also, the Aug Philadelphia Fed business outlook survey rose +25.5 to a 16-month high of 12.0, stronger than expectations of -10.4.
