The dollar index (DXY00) on Wednesday rose by +0.02%. The dollar moved slightly higher on Wednesday due to weakness in the euro after EUR/USD fell to a 3-week low. However, the dollar gave up most of its advance as T-note yields tumbled, with the 10-year T-note yield falling to a 1.5-week low, which weakened the dollar's interest rate differentials.
Gains in the dollar were also limited due to concern over the Fed's independence and fears about capital flight with President Trump’s move to fire Fed Governor Lisa Cook. If Mr. Trump succeeds in firing Fed Governor Cook, foreign investors may lose faith in the Fed and the dollar and swap their dollar assets into non-dollar investments.
