The dollar index (DXY00) Friday rose by +0.37%. The dollar on Friday recovered from early losses and posted moderate gains. Friday’s better-than-expected US economic news on Dec housing starts and Dec manufacturing production were bullish for the dollar. Also, Friday's action by the IMF to raise its 2025 US GDP forecast due to stronger demand supports the dollar. In addition, hawkish comments from Cleveland Fed President Hammack were bullish for the dollar when she said the Fed could be "very patient" on further interest rate cuts.
The dollar on Friday initially moved lower after the 10-year T-note yield fell to a 2-week low of 4.566%, weakening the dollar's interest rate differentials. Also, Friday's stock rally reduced liquidity demand for the dollar.
