The dollar index (DXY00) today is little changed. The dollar is holding its own despite bearish factors that include US political uncertainty, slightly lower T-note yields, and higher stocks. The 10-year T-note yield today is down -2.1 bp at 4.217%, which undercut the dollar’s interest rate differentials.
US political uncertainty rose after President Biden dropped out of the presidential race on Sunday and endorsed Vice President Harris. The markets will be watching to see how quickly VP Harris can wrap up the nomination as the Democratic presidential candidate and how she polls against Mr. Trump once she becomes the nominee.
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