
The dollar index (DXY00) rallied to a 1-week high on Wednesday and finished up by +0.57%. The dollar moved higher on Wednesday and found support on better-than-expected US economic reports on Dec capital goods new orders, Dec housing starts and building permits, and Jan manufacturing production. Also, higher T-note yields on Wednesday have strengthened the dollar's interest rate differentials. Gains in the dollar accelerated on Wednesday on the hawkish minutes of the Jan 27-28 FOMC meeting, after "several" officials suggested the Fed may need to raise interest rates if inflation stays above its goal.
US MBA mortgage applications rose +2.8% in the week ended February 13, with the purchase mortgage sub-index down -2.7% and the refinancing mortgage sub-index up +7.1%. The average 30-year fixed rate mortgage fell -4 bp to 6.17% from 6.21% in the prior week.