The dollar index (DXY00) Thursday rose by +0.41% and posted a 1-1/2 week high. The dollar rose Thursday on concerns that US trade policies will keep inflation elevated and dissuade the Fed from lowering interest rates. The dollar added to its gains Thursday on signs of strength in the US economy after weekly jobless claims rose less than expected, the Mar Philadelphia Fed business outlook survey fell less than expected, and Feb existing home sales unexpectedly rose. Thursday’s decline in T-note yields weakened the dollar’s interest rate differentials and limited gains in the dollar.
US weekly initial unemployment claims rose +3,000 to 223,000, showing a slightly stronger labor market than expectations of 224,000.
