The dollar index (DXY00) Tuesday fell by -0.06%. Tuesday’s decline in T-note yields undercut the dollar. Also, Tuesday’s weaker-than-expected report on the US Oct Empire manufacturing survey general business conditions is bearish for the dollar. The dollar was also pressured Tuesday after San Francisco Fed President Daly said the Fed will likely make one or two more 25 bp rate cuts this year. The dollar recovered from its worst levels after Tuesday’s slide in equity markets boosted liquidity demand for the dollar.
The US Oct Empire manufacturing survey general business conditions fell -23.6 to a 5-month low of -11.9, weaker than expectations of 3.6.
