The dollar index (DXY00) today is up by +0.07% and just below Wednesday's 1-week high. The dollar garnered support from today's US existing home sales report, which showed sales rose to a 7-month high. Also, higher T-note yields today strengthened the dollar's interest rate differentials. In addition, weakness in the yen is benefiting the dollar, as the yen fell to a 1.5-week low today on concerns that new Japanese Prime Minister Takaichi will advocate a less hawkish monetary policy. Gains in the dollar are limited due to the ongoing shutdown of the US government. The longer the shutdown is maintained, the more likely the US economy will suffer and the more likely the Fed will have to cut interest rates.
US Sep existing home sales rose +1.5% m/m to a 7-month high of 4.06 million, right on expectations.
