The dollar index (DXY00) on Wednesday rose by +0.27%. Wednesday’s better-than-expected US economic news on Mar housing starts and Mar core capital goods new orders supported gains in the dollar. Also, Wednesday’s +6% jump in crude oil prices increases inflation expectations, a hawkish factor for Fed policy, and a positive factor for the dollar.
The dollar raced to its highs on Wednesday afternoon after three FOMC members dissented in favor of no easing bias in the FOMC ‘s decision to keep policy unchanged. Also, hawkish comments from Fed Chair Powell support the dollar, as he said a bit of monetary policy restraint is the right place to be.
