
The dollar index (DXY00) Friday fell by -0.31% and posted a 2-1/2 week low. Friday’s decline in T-note yields weighed on the dollar. Also, Friday’s rally in the S&P 500 to a record high reduced liquidity demand for the dollar.
The markets are discounting the chances at 66% for a -25 bp rate cut at the December 17-18 FOMC meeting.