The dollar index (DXY00) Tuesday fell by -0.44% and posted a new 7-1/2 month low. Lower T-note yields Tuesday weighed on the dollar. Also, the euro's strength undercut the dollar as EUR/USD rose to a 7-1/2 month high Tuesday. The dollar extended its losses Tuesday after Fed Governor Bowman said she supports Fed rate cuts if inflation keeps falling.
Fed Governor Bowman said, "Should the incoming data continue to show that inflation is moving sustainably toward our 2% goal, it will become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive."
