The dollar index (DXY00) on Wednesday rose by +0.35% and posted a 2-month high. Hawkish comments Wednesday from Fed Governor Waller were supportive of the dollar when he said he “does not support stopping rate hikes unless we get clear evidence that inflation is moving down towards our 2% objective." Also, weakness in the British pound Wednesday was positive for the dollar after GBP/USD dropped to a 5-week low.
The minutes of the May 2-3 FOMC meeting were neutral for the dollar as they showed policymakers divided on whether further interest rate increases are needed. "Almost all participants stated that, with inflation still well above the committee's longer-run goal and the labor market remaining tight, upside risks to the inflation outlook remained a key factor shaping the policy outlook."
