The dollar index (DXY00) today is up by +0.17%. The dollar recovered from a 1-week low today and turned higher, as concerns eased over the credit quality of US regional banks. The dollar rose as the alleged loan frauds tied to Zions Bancorp and Western Alliance Bancorp appear to be confined and show no signs of contagion. An easing of US-China trade tensions is positive for global growth prospects and the dollar, following President Trump's statement that high tariffs on Chinese goods are unsustainable. Higher T-note yields today have also strengthened the dollar's interest rate differentials.
The ongoing shutdown of the US government is bearish for the dollar. The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar.
