The dollar index (DXY00) today is up by +0.28% at a 2-month high. The dollar is moderately higher on reduced Fed interest rate expectations after last week’s US consumer and producer price reports for September were stronger than expected. Also, weakness in the yen is boosting the dollar as the yen tumbled to a 2-1/4 month low today against the dollar.
Today’s comments from Minneapolis Fed President Kashkari signal he favors a gradual pace of interest rate cuts when he said it appears likely that "further modest reductions" in the federal funds rate will be appropriate in coming quarters.
