The dollar index (DXY00) tumbled to a 1.75-month low today and is down by -0.55%. The dollar is under pressure today on negative carryover from Wednesday after the FOMC cut the federal funds target range by -25 bp and said it would boost liquidity in the financial system and begin purchasing $40 billion a month in T-bills.
The dollar added to its losses today after US weekly jobless claims rose more than expected to a 3-month high, a sign of labor market weakness that is dovish for Fed policy. A supportive factor for the dollar was today's news showing that the US Sep trade deficit unexpectedly shrank to its smallest level in 5.25 years.
