
The dollar index (DXY00) today is up by +0.37%. Today's weakness in stocks is boosting liquidity demand for the dollar. Also, higher T-note yields today are supportive of the dollar. In addition, today's slump in the yen to a 1-month low on political risks in Japan is bullish for the dollar on a report that Liberal Democratic Party Secretary-General Moriyama intends to step down.
The dollar fell back from its best level after today's economic reports showed the Aug ISM manufacturing index rose less than expected and July construction spending declined for the third consecutive month.