The dollar index (DXY00) today is down by -0.04% as a rally in stocks curbs liquidity demand for the dollar. Hawkish Fed comments limited losses in the dollar. New York Fed President Williams said the Fed is "well positioned" to pull off a soft landing for the US economy, and St. Louis Fed President Musalem warned of easing monetary policy too quickly. Also, today’s news that the US Aug trade deficit fell to a 5-month low is supportive of the dollar.
Monday evening, St. Louis Fed President Musalem said, "Given where the economy is today, I view the costs of easing too much too soon as greater than the costs of easing too little too late."
