The dollar index (DXY00) on Thursday rose by +0.12%. The dollar recovered from early losses on Thursday and moved higher after the sell-off in equity markets spurred liquidity demand for the dollar. The dollar also has some carryover support from Wednesday’s better-than-expected US Jan payroll report that dampened speculation of additional Fed interest rate cuts.
The dollar initially moved lower on Thursday as the smaller-than-expected decline in weekly US jobless claims and the larger-than-expected decline in Jan existing home sales knocked T-note yields lower and weighed on the dollar. Also, strength in the Chinese yuan is pressuring the dollar, as the yuan rallied to a new 2.5-year high on Thursday.
