The dollar index (DXY00) today is down by -0.20% and posted a 5-week low. Today’s tumble in T-Note yields has weakened the dollar’s interest rate differentials and is weighing on the dollar. The dollar also came under pressure when President Trump on Sunday threatened to impose tariffs on Colombia after the country refused to take in deported immigrants from the US. However, the dollar recovered some of its losses after a deal was reached with Colombia to take the deported migrants. The dollar also garnered some support from strength in today’s US economic news after the Dec Chicago Fed national activity index rose more than expected to a 7-month high, and Dec new home sales rose more than expected.
The US Dec Chicago Fed national activity index rose +0.16 to a 7-month high of 0.15, stronger than expectations of -0.06.
