US dollar continues to benefit from FOMC minutes

The US dollar has been on the rise since the start of US trading on Thursday, fueled by signals from the Federal Reserve’s previous meeting. Additionally, weekly jobless claims continue to decline.

The dollar index, which measures the performance of the US currency against major currencies, reached 104.97 points compared to the previous day’s closing at 104.93 points. However, the index dipped to its lowest level during Thursday’s trading, reaching 104.63 points, compared to the highest level of 104.98.

FOMC minutes for the Fed’s monetary policy meeting held earlier this month have raised concerns among policymakers. They are increasingly worried about making progress in reducing inflation. Fed members indicated that they lack the necessary confidence to begin interest rate cuts, following the release of the Fed’s latest meeting results on Wednesday.

The minutes also highlighted concerns among monetary policy makers at the Fed regarding progress toward interest rate cuts in the near future. They pointed out that while inflation declined over the past year, recent months have shown a lack of further progress in achieving the committee’s target of 2.00% inflation.

Weekly jobless claims in the United States increased by 215,000 claims for the week ending May 17th, compared to the previous reading of 223,000 claims. This figure was lower than market expectations, which had suggested a possible increase of 22,000 claims.

The decline in jobless claims is considered an indicator of improving conditions in the US labor market. However, it remains a matter of concern for the Federal Reserve and may lead them to reconsider interest rate cuts in the near future.