The dollar index (DXY00) today fell to a 1-week low and is down by -0.36%. Strength in the euro is weighing on the dollar today as EUR/USD rallied to a 1-week high on optimism that US-Russian talks could lead to the end of the war in Ukraine. Also, lower T-note yields today are weighing on the dollar. Strength in stocks today also reduced liquidity demand for the dollar.
Losses in the dollar are limited after President Trump announced that reciprocal tariffs are coming today, raising concerns about inflation that could keep the Fed from cutting interest rates. Also, today’s US economic news was hawkish for Fed policy and supportive for the dollar.
