The dollar index (DXY00) on Monday fell by -0.33%. The dollar on Monday dropped from a 3-week high and turned lower on dovish Fed comments. Fed Governor Bowman and Chicago Fed President Goolsbee said they favored a Fed rate cut at next month’s FOMC meeting. Also, Monday’s rebound in stocks curbed liquidity demand for the dollar. In addition, Monday’s fall in the 10-year T-note yield to a 6-week low weighed on the dollar’s interest rate differentials.
The dollar initially rallied to a 3-week high Monday after the weekend attack by the US on Iran’s nuclear facilities boosted safe-haven demand for the dollar. The dollar also found support from the stronger-than-expected US PMI and existing home sales reports.
