The dollar index (DXY00) Wednesday rose by +0.43%. The dollar recovered from early losses Wednesday and moved moderately higher mid-morning following the release of the stronger-than-expected US Aug new home sales report. Higher bond yields on Wednesday also strengthened the dollar’s interest rate differentials. The dollar Wednesday initially moved lower due to the strength in the Chinese yuan, which rallied to a 16-month high on the heels of Chinese government actions this week to boost stimulus measures.
US Aug new home sales fell -4.7% m/m to 716,000, a smaller decline than expectations of a decline to 700,000.
