August 1, 2021

Dollar recovers ground as jobless claims data helps

The dollar index, which measures the greenback against a basket of six currencies, was 0.1% higher at 92.504. The index fell as low as 92.272 earlier in the session.

The index has climbed in recent weeks as investors got more sanguine about the outlook for the greenback, driven by an increasingly upbeat assessment of the U.S. economy by the Federal Reserve, which has brought forward the time frame on when it will next raise rates.

Graphic: Rebounding dollar:

On Wednesday, Fed chair Jerome Powell said he is confident recent price hikes are associated with the country’s post-pandemic reopening and will fade, and that the Fed should stay focused on getting as many people back to work as possible.

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