US dollar gains as strong economic data could reduce rate cuts this year

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Key Points

NEW YORK (Reuters) -The U.S. dollar advanced on Thursday, boosted by data showing hotter-than-expected producer prices last month and fewer people seeking unemployment claims, which suggested that the Federal Reserve could reduce the number of rate cuts this year...

Data on Thursday showed the U.S. producer price index for final demand rose 0.6% in February after advancing by an unrevised 0.3% in January..

A separate report from the Labor Department was also better-than expected, showing that U.S. initial claims for state unemployment benefits fell 1,000 to a seasonally-adjusted 209,000 for the week ended March 9..

There is the possibility that the Fed next week raises the median dot for 2024 and 2025, which means fewer rate cuts, said Thierry Albert Wizman, global FX and rates strategist, at Macquarie in New York...

The Feds current dot plot, or the central banks interest rate forecast, showed three rate cuts for 2024, but that was released at the December meeting and inflation numbers since then have been sticky...

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