The dollar index (DXY00) on Friday fell by -0.58%. The dollar was under pressure Friday as T-note yields retreated on dovish comments from Fed Governor Christopher Waller and St. Louis Fed President Alberto Musalem, who expressed their support for additional Fed interest rate cuts. Losses in the dollar accelerated on Friday after US-China trade tensions escalated, which could weigh on economic growth, following President Trump’s threat of a “massive increase” in tariffs on Chinese goods.
The ongoing shutdown of the US government is bearish for the dollar as the shutdown entered its second week on Monday. The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar.
