
The dollar index (DXY00) Wednesday fell by -0.42% and posted a 1-1/2 week low. The dollar is under pressure because of concerns that US tariffs will start a trade war that derails the economy. Also, a recovery in stock prices on Wednesday reduced liquidity demand for the dollar. Losses in the dollar were limited after the US Mar ADP employment and Feb factory orders reports rose more than expected, which is a hawkish factor for Fed policy.
The US Mar ADP employment change rose +155,000, stronger than expectations of +120,000.