The dollar index (DXY00) on Wednesday fell by -0.28%. The dollar moved lower on Wednesday after dovish comments from Boston Fed President Susan Collins reinforced expectations that the Fed will cut interest rates at the October 28-29 FOMC meeting, when she stated that it is prudent for the Fed to cut interest rates further this year. Also, the strength in stocks on Wednesday reduced some liquidity demand for the dollar. The dollar recovered from its worst level today after the US Oct Empire manufacturing survey of general business conditions rose more than expected and the Fed's Beige Book stated that input costs increased at a faster pace, a hawkish factor for Fed policy.
The ongoing shutdown of the US government is bearish for the dollar. The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar.
