Weekly initial jobless claims fell to 187,000 last weekthe lowest level since September 1969 and below the forecast of 212,000.
While new orders for durable goods unexpectedly fell in February due to slower shipments, demand for goods remained strong. Also, a measure of business activity for March rose to an eight-month high.
Recent data and comments from Federal Reserve officials have strengthened views that the central bank will increase rates by more than 25 basis points at its next monetary policy meeting in May.
The expectations of a increase of 50 basic points in that meeting are 70.5%, according to CME’s FedWatch tool, up from 32.9% a week ago.
Federal Reserve Chairman Jerome Powell recently raised the possibility of raising interest rates by more than 25 basis points at upcoming meetings.a more aggressive stance echoed by other central bankers as they seek to cool rising inflation, which has supported the dollar of late.
On Thursday, Chicago Fed chief Charles Evans said he would be comfortable raising rates at each Fed meeting through next March by 25 basis points each time, but remains “open-minded” about a possible hike. 50 basis points.
The dollar index rose 0.163%, with the euro dipping 0.06% to $1.0997.
The yen fell against the dollar for the fifth session in a row, touching its lowest level since December 2015 at 122.40 units and the Bank of Japan is expected to maintain its accommodative monetary policy, in contrast to most other central banks in the world.
The yen lost 0.92% against the dollar to 122.27 per dollar, while the British pound traded at $1.318, down 0.17% on the day.