The dollar index (DXY00) Tuesday rose by +0.59%. The dollar moved higher Tuesday after President Trump over the weekend extended the deadline for a 50% tariff on US importers of EU goods by about 5 weeks to July 9 from June 1. The dollar also garnered support from hawkish comments Tuesday by Minneapolis Fed President Kashkari, who said he favors “maintaining the fed funds rate at current levels.” The dollar extended its gains after the Conference Board’s US May consumer confidence index rose more than expected to a 3-month high.
Gains in the dollar were limited Tuesday after the US Apr capital goods new orders nondefense ex-aircraft and parts fell more than expected. Also, Tuesday’s stock rally curbed liquidity demand for the dollar. The dollar still has some negative carryover from last Thursday when the House passed President Trump’s tax and spending plan, which would add to the burgeoning US budget deficit.
