The view is growing that the US labor market is healthy, allowing the Federal Reserve to focus on tackling inflation. The US Labor Department reported that initial jobless claims for last week fell by 8,000 to 187,000, defying expectations for an increase and hitting the lowest level since 1969. Continuing claims also unexpectedly declined to 1.796 million, indicating that layoffs remain limited. Meanwhile, crude oil prices rose again on supply disruption concerns related to the Iran situation, reigniting inflation worries. The probability of a rate hike at next week's FOMC meeting is just under 40%, but short-term money markets are pricing in nearly a 70% chance of a second rate hike this year, lending support to dollar buying.