
The dollar index (DXY00) on Friday rose by +0.42%. The dollar moved higher on Friday as weakness in stocks boosted some liquidity demand for the dollar. Also, the ongoing war in Iran has boosted demand for the dollar as a safe haven. In addition, higher T-note yields on Friday strengthened the dollar’s interest rate differentials. The dollar also has carryover support from Wednesday, when Fed Chair Powell said there will be no Fed rate cut unless there is progress on inflation.
Swaps markets are discounting the odds at 12% for a +25 bp rate hike at the April 28-29 FOMC meeting.