The US dollar index (DXY) rose by 0.17% today, recovering from a 6-week low, driven by better-than-expected US economic data. Weekly jobless claims decreased by 11,000 to 207,000, surpassing expectations of 213,000. Additionally, the April Philadelphia Fed business outlook survey unexpectedly increased by 8.6 points to 26.7, a 15-month high, against an anticipated decline to 10.0.
Despite initial weakness due to discussions of extending a US-Iran ceasefire, which would reduce geopolitical tensions, the dollar received support from hawkish comments by New York Fed President John Williams, who indicated a preference for steady Fed policy amid uncertain economic conditions. Swaps markets currently reflect only a 1% chance of a 25 basis point rate hike at the upcoming FOMC meeting on April 28-29.
In Asian markets, the Japanese yen fell 0.10% as the Nikkei Stock Index reached an all-time high, decreasing safe-haven demand. Meanwhile, China’s economy exhibited strength with Q1 GDP growing by 5.0% year-on-year, outpacing expectations of 4.8%, and March industrial production rising by 5.7%, exceeding forecasts of 5.3%.
