The dollar index (DXY00) Monday rose by +0.50% and posted a 4-1/4 month high. Hawkish comments from Minneapolis Fed President Kashkari boosted the dollar when he said US economic strength and higher productivity could prompt the Fed to cut rates less than expected. Also, the dollar is extending last week’s post-election rally on speculation that T-note yields will increase as inflation increases due to President-elect Trump’s pro-tariff policies.
On Saturday, Minneapolis Fed President Kashkari said a strong US economy and higher productivity growth could lead policymakers to reduce interest rates less than previously expected over the coming months.
