The dollar rallied on Thursday as investors plowed cash back into riskier asset classes, with an underpinning of promising data from the United States and better-than-expected manufacturing data in Europe and China.
The dollar was up against a basket of major currencies, trading around 85.8. It benefited from both rising U.S. Treasury yields, which illustrated an easing of investor concerns after last week’s phalanx of selling, and a continuing U.S. equities rally.
On the data front, the Conference Board’s U.S. Leading Economic Index increased 0.8 percent in September after being flat in August, pointing to solid economic growth for the remainder of the year. New claims for U.S. unemployment benefits rose last week, but the underlying trend remained consistent with a firming labor market, data showed on Thursday.
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