US dollar index bounces near 109 mark as improvement in GDP estimates supports sentiments

The US dollar index edged up today as supportive US economic cues pushed up the currency after a dip earlier in the week. The US currency slipped to one week low of 108.50 on Wednesday but rose thereafter and currently trades at 109, up 0.20% on the day. The US currency saw muted moves yesterday but is broadly supported after Atlanta Fed lifted its estimate for U.S. GDP growth in the fourth quarter of 2024. The GDPNow model estimate for real GDP growth for the fourth quarter was raised to 3.0 percent from 2.7 percent forecast on January 9.

Other data was mixed. The US Commerce Department said retail sales rose by 0.4 percent in December after advancing by an upwardly revised 0.8 percent in November. The core retail sales climbed by 0.7 percent in December though, improving from 0.4 percent gain in November. The Labor Department released a report showing initial jobless claims climbed to 217,000 in the week ended January 11th, an increase of 14,000 from the previous week's revised level of 203,000. The large increase came after jobless claims fell to their lowest level since hitting 200,000 in the week ended February 17, 2024.

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