
The dollar index (DXY00) Wednesday fell by -0.01%. The dollar on Wednesday fell from a 1-week high and finished little changed after EUR/USD rallied on news that President Trump and Russian President Putin agreed to begin talks on ending the war in Ukraine.
The dollar on Wednesday initially rallied after US Jan CPI unexpectedly accelerated, dampening expectations for additional Fed rate cuts and signaling the Fed will keep interest rates higher for longer. Also, higher T-note yields on Wednesday supported the dollar. In addition, Wednesday’s slump in stocks has boosted liquidity demand for the dollar.