The dollar index (DXY00) on Friday rose by +0.37%. The dollar on Friday recovered from a 2-week low and rose moderately. The dollar strengthened Friday as stronger-than-expected US economic reports on Mar personal spending and Mar core PCE deflator were hawkish for Fed policy and may further delay rate cuts from the Fed. Also, weakness in the yen is supportive of the dollar after the yen dropped to a 34-year low against the dollar on Friday. Friday’s stock rally limited gains in the dollar as it reduced liquidity demand for the dollar.
US Mar personal spending rose +0.8% m/m, stronger than expectations of +0.6% m/m. Mar personal income rose +0.5% m/m, right on expectations.
