Anna 
The dollar index extended its gains for a fifth consecutive session on Thursday, supported by favorable labor market data that exhibited job growth and tempered expectations of an imminent interest rate cut by the Federal Reserve. Initial claims for state unemployment benefits fell to 187,000, the lowest since September 2022, contrary to the expected 207,000.
The U.S. dollar index, measuring the currency against a basket of peers, rose 0.14% to 103.47, marking its fifth straight session of gains, the longest streak since August. Expectations for a Fed rate cut in March dropped to 57.1%, compared to 73.2% a week ago.
Atlanta Federal Reserve President Raphael Bostic’s openness to earlier rate cuts, if inflation falls faster than expected, added nuance to the rate cut outlook. The dollar remained stable against the yen at 148.14, having touched 148.52 on Wednesday, its highest since Nov. 28.
The euro dipped 0.14% to $1.0866 after the European Central Bank’s December meeting accounts showed confidence in inflation returning to target but highlighted risks warranting steady policy and high borrowing costs.
Sterling gained 0.17% to $1.269, supported by unexpected December inflation acceleration, reinforcing the view that the Bank of England may delay rate cuts compared to other central banks.
