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Barchart
Barchart
Rich Asplund

Dollar Rallies as Bond Yields Rise and Stocks Retreat

The dollar index (DXY00) Wednesday rose by +0.48% and posted a 2-week high. The dollar rallied Wednesday on the rise in the 10-year T-note yield to a 4-week high.  The dollar also garnered some support from Wednesday’s stronger-than-expected May Richmond Fed manufacturing outlook survey.  In addition, the weakness in stocks on Wednesday boosted liquidity demand for the dollar.

The US May Richmond Fed manufacturing outlook survey rose +7 to a 7-month high of 0, stronger than expectations of no change at -7.

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