The dollar index (DXY00) on Tuesday rose by +0.12%. The dollar on Tuesday recovered from a 2-1/2 month low and posted modest gains. The dollar found support from the Oct 31-Nov 1 FOMC meeting minutes, where policymakers saw interest rates remaining restrictive for “some time." The dollar on Tuesday initially opened lower on weaker-than-expected U.S Chicago Fed and existing home sales reports, which were dovish for Fed policy. Also, Tuesday’s action by China to boost stimulus pushed the yuan to a 3-3/4 month high against the dollar.
U.S. economic news Tuesday was weaker than expected and bearish for the dollar. The Oct Chicago Fed national activity index fell -0.47 to a 7-month low of -0.49, weaker than expectations of zero. Also, Oct existing home sales fell -4.1% m/m to a 13-year low of 3.79 million, weaker than expectations of 3.90 million.
