Dollar gains against peers after US economic data
The dollar gained against peers including the euro and yen on Thursday on news that the U.S. economy grew faster than previously thought in the second quarter, which would likely restrain the future interest rate cuts by the Federal Reserve.
The Commerce Department reported that U.S. gross domestic product rose by an upwardly revised rate of 3.8% from April through June, higher than 3.3% initially reported. Economists polled by Reuters did not expect the rate to be revised.
The dollar strengthened 0.33% to 149.39 against the Japanese yen , rising to its highest level since August 1.
The euro hit a two-week low against the dollar, last trading down 0.39% at $1.1691.
The dollar index , measuring the U.S. currency against six peers, rose 0.52% to 98.34, hovering near a two-week high hit on Wednesday. The dollar has been slightly higher since the Fed lowered interest rates last week, as expected.
Traders are anticipating at least two rate cuts in this year's remaining two Fed meetings, although comments from policymakers including Chair Jerome Powell indicate a lot will depend on upcoming economic data.
U.S Treasury yields rose across the board. For benchmark U.S. 10-year notes, the yield rose 3.6 basis points to 4.183%. The 2-year note yield, which typically moves in step with interest rate expectations for the Fed, rose 5.7 basis points.
More Fed officials continued commenting on Thursday about last week's decision to cut rates. Federal Reserve Bank of Kansas City President Jeffrey Schmid said the cut was needed to help ensure that the job market remains in a good place. Federal Reserve Bank of Chicago President Austan Goolsbee said he was not eager to do a lot more policy easing while inflation is above target and moving the wrong way.
The dollar extended gains against the Swiss franc after the U.S. GDP news and as the Swiss National Bank kept key interest rates at zero, as expected.
The SNB also warned that U.S. President Donald Trump's tariffs had dimmed the Swiss economic outlook going into 2026.
The greenback hit a two-week high against the Swiss franc , strengthening 0.64% to 0.8.
Source : Reuters.com
