The U.S. dollar bounced back against a basket of major currencies on Thursday. The move was ignited early in the US session after better-than-expected U.S. economic data put a widely anticipated increase in overnight interest rates by the Federal Reserve back on the radar.
The Swiss franc and Japanese yen, currencies that forex investors seek in times of uncertainty, slipped lower against the greenback after the release of U.S. initial jobless claims and the Philadelphia Federal Reserve's Business Index.
The dollar also gained against the euro. EUR/USD fell to 1.1074.
The number of Americans applying for jobless benefits fell to a 28-year low and the Philly Fed's business index came in at double economists' expectations.
Expectations for a rate hike by the Fed had eased in the wake of downbeat data on U.S. inflation and growth in recent weeks, as well as news about President Donald Trump's firing of FBI Director James Comey and possible ties between members of his administration and Russia.
U.S. stocks closed higher on Thursday, recovering from their worst day of 2017, as investors assessed President Donald Trump's chances of moving forward with his pro-growth agenda.
