
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.