The dollar index pared early gains to trade little changed at 97.6 on Thursday, as renewed concerns over the health of the US economy, the labour market, and elevated AI valuations weighed on sentiment. The Challenger report showed US companies announced 108.4K job cuts last month, the highest January total since 2009, while initial jobless claims rose to 231K, the highest in two months and well above forecasts of 212K. Adding to the cautious tone, the ADP report showed private-sector job growth fell well short of expectations. The string of weaker labour data reinforced bets on Federal Reserve rate cuts, with markets still pricing in a first reduction in June and a second potentially in September. Meanwhile, both the ECB and the Bank of England left interest rates unchanged, as expected. The dollar rose sharply against the British pound, as traders interpreted the BoE’s tone as more dovish. The greenback was little changed versus the euro but weakened against the Swiss franc.