The dollar index (DXY00) Tuesday rose by +0.13% on higher T-note yields. However, Tuesday’s rally in the S&P 500 to a new record high curbed some liquidity demand for the dollar.
Fed Chair Powell said "more good data" would strengthen confidence that inflation is moving down toward the Fed's 2% target and recent readings point to "modest further progress" on prices. He added that the labor market is strong but not overheated, and easing too soon and too much could harm inflation progress.
