The dollar index (DXY00) today fell to a 1-week low and is down by -0.67%. Today’s +2% rally in the yen is weighing on the dollar after Japanese Finance Minister Satsuki Katayama warned that Japan is close to intervening in the forex market to support the yen. Also, lower crude oil prices today have eased inflation expectations, a dovish factor for Fed policy, and a negative factor for the dollar. The dollar extended its losses today after US Q1 GDP grew at a slower-than-expected pace and Mar leading indicators fell by the most in eleven months.
The dollar found some support today after US weekly jobless claims fell to a 57-year low, the Q1 employment cost index rose more than expected, and the US Mar core PCE price index, the Fed’s preferred inflation gauge, rose 3.2% y/y, the largest increase in 2.25 years.
