Dollar at highs, shrugs off weak inflation and jobs data
The dollar advanced to session highs against a basket of global currencies on Thursday, shrugging off a duo of weaker than expected economic reports.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.12% to 95.66.
The dollar hit session highs despite data showing that both wholesale inflation and initial jobless claims undershot expectations.
Inflation continued to stutter as U.S. producer prices rose 0.1% in June, missing expectations of a 0.2% rise.
The U.S. Department of Labor reported Thursday that initial jobless claims fell by 3000 to 247,000 in the week ended July 7, missing forecasts of a 5,000 decline.
The latest batch of soft inflation data come amid a second day of testimony from Fed chair Janet Yellen, which was mainly focused on regulatory issues, but Yellen did mention there weren’t any signs the current economic expansion will come to end soon.
A day earlier on Wednesday, Yellen signalled that interest rate increases would be gradual, lowering investor expectations of the Fed adopting an aggressive rate hike path.
The tick higher in the greenback weighed on the euro, with EUR/USD at $1.1387, down 0.22%.
GBP/USD rose to $1.2921, up 0.29%, after Bank of England policymaker Ian McCafferty urged the central bank to consider unwinding its quantitative easing programme early.