The US dollar is strengthening on Thursday on decent jobs numbers and growing expectations that the Federal Reserve will signal policy tapering. Despite its rally in recent weeks, the greenback has taken a breather, with many investors pouring into equities. The buck is looking to end the dog days of summer on a high note as the foreign exchange markets brace for the volatile fall season.

According to the US Bureau of Labor Statistics (BLS), the number of Americans filing for unemployment benefits clocked in at 353,000 in the week ending August 21, coming in higher than the median estimate of 350,000. This is up from last week’s 349,000 reading.

Continuing jobless claims fell 2.862 million from the previous week, while the four-week average, which eliminates week-to-week volatility, topped 366,000.

Meanwhile, the gross domestic product (GDP) growth rate is estimated to be 6.6% in the second quarter, lower than the market forecast of 6.7%. The GDP price index rose 6.2%, and the quarter-over-quarter corporate profits advanced 9.7%.

The personal consumption expenditures price index surged 6.5% in the April-to-June period.

This week, the Federal Reserve will host its annual Jackson Hole retreat. It is widely expected that Fed Chair Jerome Powell will signal the central bank’s next policy maneuvers during his speech. Kansas City Fed Bank Chief Esther George recently stated that she favors tapering the $120-billion-a-month asset purchases “sooner than later,” explaining that the US economy has matched the Eccles Building’s benchmark for tapering.

The dollar is benefiting from climbing Treasury yields, with the benchmark 10-year bond up 0.014% to 1.358%. The one-year bill was unchanged at 0.066%, while the 30-year bond dipped 0.005% to 1.956%.

The US Dollar Index (DXY), which measures the greenback against a basket of currencies, jumped 0.2% to 93.01, from an opening of 92.83. The index is on track for a weekly loss of 0.6%, paring its year-to-date gain to below 3.5%.

The USD/CAD currency pair rose 0.24% to 1.2623, from an opening of 1.2591, at 13:25 GMT on Thursday. The EUR/USD slipped 0.17% to 1.1752, from an opening of 1.1774.