The dollar index (DXY00) Wednesday fell slightly by -0.17% following two sessions of small gains. The dollar fell despite a +4.1 bp rise in the 10-year T-note yield and weakness in stocks.
The dollar on Wednesday gave up Tuesday’s small rally that was sparked by the slightly hawkish U.S. CPI report. In Tuesday’s report, the Feb core CPI dipped to a 2-3/4 year low of +3.8% y/y. However, the Feb headline CPI of +3.2% y/y was slightly above expectations of +3.1% and was 0.2 points above last June’s 2-3/4 year low of +3.0%. Both CPI measures remain well above the Fed’s +2% inflation target.
