The dollar index (DXY00) Tuesday fell by -0.35%. The dollar was under pressure from concern that President Trump's 25% tariffs on all steel, aluminum, and finished metals imports into the US will encourage retaliation that curbs US economic growth. Losses in the dollar were limited by higher T-note yields that strengthened the dollar’s interest rate differentials. Also, hawkish comments Tuesday from Fed Chair Powell and Cleveland Fed President Hammack were positive for the dollar when they said interest rates are on hold until inflation falls further.
Fed Chair Powell said, "With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance."
