Forex
Dollar Falls as Stocks Rally and Yields Drop
The US dollar index DXY fell by -0.03% on Thursday from its new 1.5-month high, as lower T-note yields and a sharp rally in stocks curbed demand for dollar liquidity.
The dollar's losses were limited after the release of US weekly jobless claims, which unexpectedly fell to an 8-week low of 196,000, signaling a strong labor market.
The FOMC's decision to raise interest rates by 25 bp on Wednesday and signal another rate hike by the end of the year also provided carryover support for the dollar.