The dollar index (DXY00) Monday fell by -0.52%. The dollar today gave up an early advance and turned lower on economic concerns after the Apr Dallas Fed manufacturing survey of general business activity index fell more than expected to a 5-year low. The dollar is also under pressure on concerns that the US-China trade war could drag on and weigh on US growth prospects after President Trump said the US would not lower tariffs on China unless “they give us something substantial.” In addition, Monday’s fall in the 10-year T-note yield to a 2-1/2 week low weakened the dollar’s interest rate differentials.
The dollar on Monday initially moved higher on comments from US Treasury Secretary Bessent, who said the US is working on bilateral trade deals with 17 key trading partners, not including China.
