The dollar index (DXY00) today is up by +0.05%. The dollar today recovered from early losses and climbed to a 1-week high after the as-expected US Aug CPI report diminished the chances of a 50 bp rate cut by the Fed at next week’s FOMC meeting, a supportive factor for the dollar. Also, the weakness in stocks today has sparked some liquidity demand for the dollar.
The dollar today initially moved lower after the 10-year T-note yield fell to a 15-month low and after hawkish comments from BOJ member Nakagawa pushed the yen up to an 8-month high against the dollar.
