The dollar index (DXY00) today is up by +0.27%. The dollar is climbing today ahead of the results of the FOMC meeting later today when the Fed is expected to leave interest rates steady. The dollar also has carryover support from Tuesday when President Trump said he was considering tariffs on everything from steel and copper to semiconductor chips and wanted universal tariffs at “much bigger” than 2.5%. Lower T-note yields today are limiting the upside in the dollar.
The markets are discounting the chances at 1% for a -25 bp rate cut at the conclusion of today’s FOMC meeting.
