The dollar index (DXY00) Tuesday rose by +0.18%. The dollar moved higher Tuesday after President-elect Trump said on his first day in office he would impose an extra 10% tariff on goods from China and a 25% tariff on all products from Canada and Mexico. The dollar also found support Tuesday on hawkish comments from San Francisco Fed President Daly, who said inflation is still above target and the Fed still needs to work on bringing it down. In addition, the Nov 6-7 FOMC meeting minutes showed policymakers favored a gradual approach to interest rate cuts, a supportive factor for the dollar.
Gains in the dollar were limited Tuesday after stocks rallied, reducing liquidity demand for the dollar. US economic news was mixed for the dollar, with Nov US consumer confidence climbing to a 16-month high and Oct new home sales falling to a nearly 2-year low.
