The dollar index (DXY00) today is up by +0.57%. The dollar is climbing today due to an easing of the harsh trade rhetoric against China after President Trump said he plans to be “very nice” to China in any talks and that tariffs will drop if the two countries can reach a trade deal. Also, confidence in the dollar improved after President Trump said late Tuesday that he had no intention of firing Fed Chair Powell.
Hawkish comments from Fed Governor Kugler also boosted the dollar when she said she supports holding interest rates steady until inflation risks abate. The dollar extended its gains on today’s stronger-than-expected US new home sales and manufacturing PMI reports.
