The dollar index (DXY00) this morning is up by +0.23%. The dollar today recovered from a 2-week low and is moderately higher. The dollar strengthened today as stronger-than-expected US economic reports on Mar personal spending and Mar core PCE deflator were hawkish for Fed policy and may further delay rate cuts from the Fed. Also, weakness in the yen is supportive of the dollar after the yen today dropped to a 34-year low against the dollar. Today’s stock rally limits gains in the dollar as it reduces liquidity demand for the dollar.
US Mar personal spending rose +0.8% m/m, stronger than expectations of +0.6% m/m. Mar personal income rose +0.5% m/m, right on expectations.
