US Dollar Rebounds on Positive Growth and Employment Data

The US dollar continued its upward trajectory following the opening of Wall Street trading on Thursday, buoyed by positive economic data on growth and employment in the United States.

The dollar index, which measures the performance of the greenback against a basket of six major currencies, rose to 101.31 points compared to the previous day’s close of 101.09 points. The index reached a low of 100.89 points during the trading day but also hit a high of 101.58 points.

Several employment indicators highlighted an improvement in the US labor market, supporting the dollar’s strength. This data, coupled with growth figures, were the primary drivers behind the greenback’s rally on Thursday, especially in the face of the strong optimism generated by Nvidia’s financial results, which significantly exceeded earnings and revenue expectations.

Initial jobless claims fell to 231,000 for the week ending August 25, compared to the previous week’s reading of 233,000, which was below market expectations of 232,000. However, the total number of Americans claiming unemployment benefits rose to 1.868 million for the week ending August 16, compared to the previous reading of 1.855 million, which was below market expectations of 1.870 million.

The US annualized GDP for the second quarter of this year grew by 3.00%, compared to the previous reading of 2.8% and expectations that growth might remain unchanged in the second quarter compared to the previous period. This figure was a key factor supporting the US dollar, as it highlighted the strength of the US economy, which the dollar represents in the markets.