U.S. Dollar Resilient Amid Economic Shifts and Rate Speculation

The U.S. dollar exhibited strength against major counterparts such as the euro and yen on Thursday following positive economic data from the United States. The Commerce Department reported a refined GDP growth rate of 3.8% from April through June, surpassing initial forecasts of 3.3%.

This unexpected growth led to a significant rise in the dollar's value, increasing 0.58% to 149.77 against the yen, while the euro plummeted to a two-week low of $1.1659. Steve Englander from Standard Chartered Bank highlighted that the market initially misjudged the dollar's stability amid divergent labor and output metrics.

Fed officials provided further insights, anticipating future interest rate decisions contingent upon evolving economic data. As markets react, the dollar index advanced 0.68% to a two-week peak, influenced by ongoing rate cut speculations and broader economic conditions.

(With inputs from agencies.)