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Dollar Index holds above 98.50 after weaker-than-expected claims

Initial jobless claims fell to 206K versus 210K consensus, while a hawkish Fed voice helped the index rally off the session low.

Reported · Written up by our desk · Major Pairs

The Dollar Index spent the day building support just above 98.50, after a batch of US data and Fed commentary pushed the currency higher from a London low slightly above that level, FXStreet said.

Initial jobless claims were reported at 206K, compared with 210K consensus and 212K the week prior. The Philadelphia Fed’s August manufacturing survey also stood out, reading 47.4 versus 25 expected and 41.4 in the prior month, with several subcomponents showing stronger employment and outlook measures.

FXStreet noted that the index remains under key longer-term benchmarks, trading more than a point below its 50-day EMA and about 0.8 point beneath the 200-day level, with the 50-day rolling over toward price.

On the policy side, the outlet said one regional Fed voice was hawkish, favoring a quarter point in July and arguing inflation is more likely than not to stay above target, without committing to September. It also pointed to Treasury liquidity-support buyback plans as a separate factor affecting the dollar’s moves during the week.

Latest closeDollar index 99.64 ▼0.3%

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