The dollar index gave up earlier gains falling toward 112 on Thursday after tumbling more than 1% in the previous session, as the pound pushed above 1.1 USD and the Yuan gained for the first time in nine days after the CCP warned of further currency intervention.
The DXY initially tracked gains in treasury yields as fresh data showed weekly claims fell to a 5-month, and PCE prices were revised higher in Q2.
Hawkish remarks from Federal Reserve officials and the rejection of a possible currency agreement among major economies also supported the dollar.
Additionally, the White House National Economic Council Director Brian Deese rejected the idea of another 1985-type currency accord to weaken the dollar and added that the US economy’s relative strength was a significant factor driving the dollar higher.
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