The dollar index (DXY00) on Tuesday rose to a 1-week high and finished up by +0.60%. The dollar rallied Tuesday after T-note yields jumped when the US Q1 employment cost index rose more than expected, a sign of wage pressures and a hawkish factor for Fed policy. Falling stock prices Tuesday also boosted liquidity demand for the dollar. The dollar is also supported by expectations that the FOMC on Wednesday will signal the Fed will delay interest rate cuts after its 2-day meeting.
The US Q1 employment cost index rose +1.2% q/q, stronger than expectations of +1.0% q/q.
