Dollar rose in American trade on Friday, resuming gains and approaching six-week highs, on active demand following strong US growth data.
US GDP growth beat expectations in the fourth quarter of last year, hurting the odds of early US interest rate cuts in March.
The Index
The dollar index rose 0.2% to 103.44, with a session-low at 103.12, after closing down 0.25% yesterday, away from a six-week high at 103.82.
US GDP
US GDP growth clocked in at 3.3% in the fourth quarter of 2023, easily beating estimates of 2.0%, and after surging 4.9% in the third quarter.
Such data proves the resilience of the US economy despite high interest rates, in turn hurting the odds of early Federal Reserve rate cuts next March.
US Rates
Following the growth data, the odds for a US interest rate cut at the Fed March meeting slid from 44% to 40%, while the odds for such a cut in May fell to 80%.
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