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• The dollar rose for a second straight session on Thursday as traders further trimmed short currency positions and braced for next week’s Federal Open Market Committee meeting at which the U.S. central bank is expected to raise interest rates for the first time this year.

The dollar index, which measures the greenback against a basket of six other major currencies, was up 0.5 percent at 90.106. Since the beginning of the month, the index has lost about 0.7 percent.

The greenback found some support from upbeat U.S. data on Thursday, which showed the number of Americans filing for unemployment benefits fell last week.

• Other data on Thursday showed a rise in the prices of imported goods in February amid U.S. dollar weakness, bolstering expectations that inflation will pick up this year. Labour market strength and a steady increase in price pressures could allow the Fed to further raise rates at a gradual pace.

• “After the recent mixed-bag data releases, including those strong job gains and weak wages growth reported on Friday, traders may be trimming their short dollar positions ahead of next week’s FOMC meeting,” said Fawad Razaqzada, market analyst at Forex.com in London

• The outlook for the greenback, however, remains bleak amid political uncertainty in U.S. President Donald Trump’s cabinet and renewed worries about trade wars, analysts said.

• In mid-afternoon trading, the dollar fell 0.2 percent to 106.13 yen as trade tensions encouraged investors to buy the Japanese currency. The yen is expected to benefit from any increase in trade protectionism, given Japan’s strong current account surplus and the currency’s reputation as a safe haven.

• The euro fell 0.5 percent against the dollar to $1.2308, still pressured by dovish talk from European Central Bank President Mario Draghi. The ECB head said on Thursday that low inflation has kept the bank from ending a key stimulus program.

• The number of Americans filing for unemployment benefits fell last week, pointing to sustained labor strength even as economic growth appears to have slowed early in the first quarter.

Initial claims for state unemployment benefits dropped 4,000 to a seasonally adjusted 226,000 for the week ended March 10, the Labor Department said on Thursday.

Last week's drop in claims was in line with economists' expectations. It was the 158th straight week that claims remained below the 300,000 threshold, which is associated with a strong labor market. That is the longest such stretch since 1970, when the labor market was much smaller.

• Two gauges of manufacturing sentiment reflected continued solid activity in March, according to data released Thursday.

The Philadelphia Fed manufacturing index slipped to a reading of 22.3 in March from 25.8 in February. Economists had expected a reading of 23.

The Empire State Index, which had been lagging Philly, jumped to a reading of 22.5 in March from 13.1 in February, the New York Fed said. Economists had expected a reading of 15.

Both gauges are well above zero, the line that indicates improving conditions.

• The special counsel, Robert S. Mueller III, has subpoenaed the Trump Organization in recent weeks to turn over documents, including some related to Russia, according to two people briefed on the matter. The order is the first known instance of the special counsel demanding records directly related to President Trump’s businesses, bringing the investigation closer to the president.

• U.S. President Donald Trump’s tough approach to global trade, including his new tariffs on metals imports, will not necessarily provoke a trade war, the White House’s top adviser on international economic exchanges, Peter Navarro, said during an interview on CNBC on Thursday.

“We can obviously do it in a way that can be good for the American people and good for the global trading system,” he said. “We can do this in a way that is peaceful and will improve and strengthen the trading system. ... Everybody on Wall Street needs to understand: Just relax.”

• U.S. Commerce Secretary Wilbur Ross and European Trade Commissioner Cecilia Malmstrom have agreed to meet next week in an attempt to resolve a deepening dispute over trade tariffs, a European Commission source said on Thursday.

Malmstrom repeated the European Union’s hope that it would be exempted, given that the bloc is a close security ally of the United States, and said the two should work together on the issue of global overcapacity, which was harming both economies.

• The State Department’s recently retired envoy for North Korea said on Thursday he has urged North Korea to send a positive signal by releasing three American prisoners before a possible summit between U.S. President Donald Trump and North Korean leader Kim Jong Un.

• The United States slapped sanctions on Russian individuals and entities for U.S. election meddling and cyber attacks but put off targeting oligarchs and government officials close to President Vladimir Putin, prompting lawmakers in both parties to say President Donald Trump needs to do much more.

U.S. President Donald Trump’s administration will maintain tough policies against Russia until Moscow changes its behavior, the White House said on Thursday.

• The Trump administration and Republicans in Congress are seeking to make temporary personal income tax cuts passed last year permanent, White House spokesman Raj Shah said on Thursday, adding they could also lower capital gains tax rates.

Still, any follow-on proposal is likely to take a while, with Congress pressed to pass a government budget bill before funding runs out March 23 and lawmakers eager to hit the campaign trail ahead of the Nov. 6 vote.

• President Donald Trump has not decided whether he will sign legislation that would allow U.S. officials to travel to Taiwan to meet with their Taiwanese counterparts, the White House said on Thursday.

• Oil prices edged higher in choppy trade on Thursday after the International Energy Agency said global oil demand is expected to pick up this year, but warned supply is growing at a faster pace.

Prices notched their second consecutive day of gains, as West Texas Intermediate (WTI) crude CLc1 futures rose 23 cents to settle at $61.19 a barrel, a 0.4 percent gain. Brent crude LCOc1 futures rose 23 cents to settle at $65.12 a barrel.

• Rising global oil demand, along with supply constraints from the Organization of the Petroleum Exporting Countries, has helped keep oil above $60 a barrel.

Reference: Reuters, CNBC, Market Watch, The New York Time