The dollar index fell further to 106.2 on Thursday after Fed Chair Powell reiterated at the Economic Club of New York that the next monetary policy step will be data dependent, and that the Fed is proceeding carefully, although policy isn’t “too tight” right now. Earlier, Fed Governor Christopher Waller said he wants to “wait, watch and see” if the US economy continues its run of strength or weakens in the face of higher borrowing costs. Still, the dollar remains close to November-highs amid expectations that interest rates will remain elevated for some time. Yet, economic data continues to point to a resilient US economy. Initial jobless claims came below forecasts once again and existing home sales, retail sales, industrial production, housing starts and building permits surprised on the upside. The biggest selling pressure was against the euro and the Swiss franc.
