Dollar index dips as traders await jobless claims data

The dollar index dipped to around 108.3 on Thursday, starting the year on a quieter note after a strong 2024.

Dollar index dips as traders await jobless claims data

Last year, the dollar gained roughly 7% against a basket of major currencies as the Federal Reserve adopted a more cautious approach to interest rate cuts in response to persistent inflation. The dollar also benefited from Trump's anticipated return to the White House, with his proposed policies—such as tax cuts, deregulation, higher tariffs, and stricter immigration—viewed as pro-growth and inflationary.

Dollar rises on growth concerns, traders eye jobless data

Concerns about slower growth in other key economies and ongoing geopolitical risks fueled safe-haven demand for the dollar. Looking ahead, traders focus on Thursday's weekly jobless claims data for further insights into the health of the labor market.