Dollar Falters Amid Mixed Economic Signals
The dollar weakened in volatile trading after robust U.S. economic data effects waned. The Swiss franc rose following a central bank interest rate cut. The dollar index dropped sharply, signaling a potential rate cut by the Fed. Corporate profits increased, and U.S. GDP grew steadily, but economic signals remain mixed.
The dollar weakened in volatile trading on Thursday as initial gains from robust U.S. economic data dissipated. Meanwhile, the Swiss franc rose after the country's central bank cut interest rates by 25 basis points.
The greenback began to recover after U.S. weekly jobless claims fell to a four-month low, and corporate profits increased more than expected in the second quarter. The U.S. GDP remained steady at 3%, but business equipment spending showed signs of decline in the third quarter.
Analyst Joseph Trevisani noted the market's confusion over the Federal Reserve's rate cuts given the solid economic performance. Despite this, the dollar index fell significantly. The euro and the Swiss franc strengthened, while the Federal Reserve and Swiss National Bank hint at potential future rate cuts in response to cooling inflation.
(With inputs from agencies.)
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