Dollar rises as investors assess strength of US economy

New York: The US dollar rose on Thursday to move further from recent 11-week lows, as investors assessed the strength of the economy and tariffs outlook after the most recent comments from US President Donald Trump.

The dollar index, which measures the greenback against a basket of currencies, rose 0.21% to 106.46, with the euro down 0.26% at $1.0486.

Against the Japanese yen, the dollar weakened 0.04% to 148.96 after falling to 148.56, its lowest since 11 October 2024.

Sterling strengthened 0.09% to $1.2677. The Canadian dollar weakened 0.9% versus the greenback to C$1.43 while the Mexican peso strengthened 0.3% versus the dollar at 20.406.

The greenback stumbled as economic data showed a sharp drop in consumer confidence, the latest in a string of data points that have prompted concerns about the strength of the US economy and persistent inflation, and caused US Treasury yields to tumble.

Markets are currently pricing in 57 bps of rate cuts from the US Federal Reserve by the end of the year, with expectations for a cut of at least 25 bps not topping 50% until the June meeting.