US DOLLAR INDEX FIRMS AROUND 103 MARK ON UPBEAT DATA

Published on Aug 16, 2024 11:24

The US dollar index is steadying around 103 mark on Friday, supported by better than expected US economic data that shunned any concerns of a US recession. US treasuries also pulled back sharply after moving notably higher over the past several sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, shot up by 10.6 basis points to 3.926 percent. The Commerce Department released a report showing much stronger than expected retail sales growth in July, easing concerns about the economic outlook. The Commerce Department said retail sales jumped by 1.0 percent in July after edging down by a revised 0.2 percent in June. Excluding a surge in sales by motor vehicle and parts dealers, retail sales still rose by 0.4 percent in July after climbing by 0.8 percent in June. Ex-auto sales were expected to inch up by 0.1 percent. Positive sentiment was also generated in reaction to a Labor Department report showing an unexpected decline by first-time claims for U.S. unemployment benefits in the week ended August 10th. The Labor Department said initial jobless claims fell to 227,000, a decrease of 7,000 from the previous week`s revised level of 234,000.