The dollar index (DXY00) on Wednesday fell by -0.59%. The dollar on Wednesday posted moderate losses. Lower T-note yields Wednesday undercut the dollar. Also, the lack of clarity regarding the U.S. debt ceiling weighs on the dollar after Treasury Secretary Yellen said the Treasury Department might run out of cash to pay its bills as soon as June 1 unless the debt ceiling is raised. The dollar maintained moderate losses Wednesday despite the Fed raising interest rates by 25 bp.
Wednesday’s better-than-expected U.S. economic news was bullish for the dollar. The Apr ADP employment change rose +296,000, stronger than expectations of +150,000 and the biggest increase in 9 months. Also, the Apr ISM services index rose +0.7 to 51.9, stronger than expectations of 51.8.
