The dollar index (DXY00) on Wednesday rose by +0.22%. Higher T-note yields Wednesday supported moderate gains in the dollar. The dollar also found support from a decline in the yen Wednesday to a 1-1/4 month low against the dollar.
Wednesday’s Fed Beige Book was neutral to slightly bearish for the dollar. The Fed Beige Book said that "overall economic activity was little changed," with consumer spending generally flat to slightly down in the 12 Fed districts during the month through April 10. Also, "overall price levels rose moderately during this reporting period, though the rate of price increases appeared to be slowing." In addition, "several districts noted that banks tightened lending standards amid increased uncertainty and concerns about liquidity."
