The dollar index (DXY00) Wednesday rose by +0.33% and posted a 1-3/4 month high. Strength in T-note yields Wednesday was supportive of the dollar. Also, positive comments from Fed Vice Chair Jefferson boosted the dollar when he said the US economy is growing at a "solid pace." In addition, the dollar found support in comments from Dallas Fed President Logan, who said she favored a gradual pace of Fed easing. The Sep 17-18 FOMC meeting minutes were neutral for the dollar. The dollar fell back from its best levels after the S&P 500 posted a new record high, which reduced liquidity demand for the dollar.
Tuesday evening, Fed Vice Chair Jefferson said the US economy is growing at a "solid pace" even as the labor market has slowed from an overheated state. He added that inflation is much closer to the Fed's 2% target and should continue to cool toward it.
