The dollar index (DXY00) rose by +0.13% on Friday as it recovered from Thursday’s 2-week low. The dollar moved higher on Friday, following hawkish comments from Kansas City Fed President Jeff Schmid and Dallas Fed President Lorie Logan, who argued against additional Fed rate cuts. The dollar fell back from its best level on Friday after stocks rebounded from early losses, reducing liquidity demand for the dollar.
The dollar also has carryover support from Thursday, when several Fed presidents said they favored keeping interest rates steady, knocking the chances of a Fed rate cut at next month’s FOMC meeting down to 42% from 70% last week.
