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Barchart
Barchart
Rich Asplund

Dollar Falls With T-note Yields

The dollar index (DXY00) Tuesday fell by -0.14%.  The dollar on Tuesday gave up early gains and fell to a 5-month low after T-note yields gave up an early advance and turned lower, weakening the dollar’s interest rate differentials.  Strength in the euro also weighed on the dollar after EUR/USD climbed toa 5-1/4 month high after Germany's parliament passed a spending package.

The dollar on Tuesday initially moved higher from stronger-than-expected US economic reports on Feb housing starts and Feb manufacturing productions.  Also, the US Feb import price index ex-petroleum report rose more than expected, a hawkish factor for Fed policy.  Weakness in stocks Tuesday also boosted liquidity demand for the dollar. 

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