The dollar index (DXY00) fell by -0.40% on Tuesday. The dollar was under pressure on Tuesday from dovish Fed comments. Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed's work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Losses in the dollar were limited on Tuesday after Sep existing home sales unexpectedly rose. Also, hawkish comments from Chicago Fed President Austan Goolsbee were supportive fr the dollar when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy.
