The dollar index (DXY00) Friday fell by -0.10%. The dollar came under pressure Friday after the University of Michigan US Oct consumer sentiment index unexpectedly declined. Also, Friday’s US Sep PPI report showed producer prices eased to 1.8% y/y, below the Fed’s 2.0% price target, bolstering expectations for a 25 bp interest rate cut at next month’s FOMC meeting. In addition, Friday’s rally in the S&P 500 to a new record high reduced liquidity demand for the dollar.
US Sep PPI final demand eased to +1.8% y/y from +1.9% y/y in Aug, stronger than expectations of +1.6% y/y. Also, Sep PPI ex-food and energy rose +2.8% y/y, stronger than expectations of +2.6% y/y.
