The dollar index (DXY00) on Monday rose by +0.16% and posted a 5-1/4 month high. The dollar gave up overnight losses Monday and moved higher as the 10-year T-note yield jumped to a 5-month high after US March retail sales rose more than expected, a hawkish factor for Fed policy. Also, the failure of stocks to hold an early rally as they turned lower Monday afternoon sparked some liquidity demand for the dollar.
The dollar on Monday initially moved lower on reduced liquidity demand as stocks rallied after geopolitical concerns eased on hopes diplomatic efforts will contain the conflict between Iran and Israel. Also, dovish comments from New York Fed President Williams undercut the dollar when he said he expects the Fed to start cutting interest rates this year.
