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Barchart
Barchart
Rich Asplund

Dollar Drops as the Yen Gains on Verbal Warnings

The dollar index (DXY00) today is down by -0.14% as it consolidates modestly below Thursday's 6-week high.  The strength in equity markets today has curbed some liquidity demand for the dollar.  Also, some hawkish comments today from Japanese Finance Minister Satsuki Katayama pushed the yen higher and weighed on the dollar.  The dollar fell to its low after the Jan NAHB housing market index unexpectedly declined.  The dollar found some support on the stronger-than-expected US Dec manufacturing production report.

US Dec manufacturing production unexpectedly rose +0.2% m/m, stronger than expectations of a decline of -0.1% m/m. Also, Nov manufacturing production was revised upward to +0.3% m/m from the previously reported unchanged m/m.

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