The dollar index (DXY00) today is down by -0.06%. Strength in the yen today is undercutting the dollar after Japanese Finance Minister Kato warned about excessive moves in the forex market after the yen tumbled to a 5-month low against the dollar on Thursday. The dollar fell to its low today after the US Nov trade deficit was wider than expected, a negative factor for Q4 GDP. However, the dollar recovered most of its losses after today’s stock selloff boosted liquidity demand for the dollar.
The US Nov trade deficit widened to -$102.9 billion from -$98.3 billion in Oct, a larger deficit than expectations of -$101.2 billion.
