The dollar index (DXY00) on Wednesday rose by +0.11%. The dollar recovered from early losses on Wednesday and moved higher after Dec ISM services index unexpectedly expanded at its fastest pace in 14 months. The dollar also rose amid increased safe-haven demand after the US seized a Russian-flagged tanker for sanctions violations.
The dollar initially moved lower on Wednesday on signs of weakness in the US labor market after the Dec ADP employment report showed private employers added fewer jobs than expected, and the Nov JOLTS report showed fewer job openings than expected, both of which are dovish for Fed policy. Wednesday's slide in T-note yields also weakened the dollar's interest rate differentials.
