The dollar index (DXY00) Friday rose by +0.31%. The dollar rose Friday with T-note yields after the hawkish US Jan payroll report reduced the chances to 10% from 16% for a Fed rate cut at next month’s FOMC meeting. Despite Jan nonfarm payrolls climbing less than expected, Dec payrolls were revised higher, and the Jan unemployment rate fell to an 8-month low, while Jan average hourly earnings rose more than expected, hawkish factors for Fed policy. The dollar also garnered support on Thursday night’s comments from Dallas Fed President Logan, who said she’s skeptical about additional Fed interest rate cuts.
The dollar raced to its high Friday afternoon when a Reuters report said President Trump is considering reciprocal tariffs on US trading partners next week without specifying the nations involved.
