
The dollar index (DXY00) today is down by -0.38%. The dollar today is mildly lower after the US Apr CPI was weaker-than-expected and showed the smallest increase in 4 years, a dovish factor for Fed policy. Also, weaker T-note yields today have weakened the dollar’s interest rate differentials. In addition, strength in stocks has curbed liquidity demand for the dollar.
US Apr CPI rose +2.3% y/y, slightly weaker than expectations of +2.4% y/y and the smallest year-on-year increase in 4 years. Apr CPI ex-food and energy rose +2.8% y/y, unchanged from March and right on expectations.