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Barchart
Barchart
Rich Asplund

Dollar Retreats on Report US to Limit Tariffs

The dollar index (DXY00) Monday fell by -0.64%.  The dollar retreated Monday after the Washington Post reported that President-elect Trump's aides are weighing a tariff program covering only critical imports.  If implemented, such a plan would disrupt global trade less than expected and reduce the inflationary impact of the tariffs, a dovish factor for Fed policy. 

Also, Monday's US economic news was weaker than expected and bearish for the dollar.  In addition, Monday's stock rally reduced liquidity demand for the dollar.  However, hawkish comments from San Francisco Fed President Daly and Fed Governors Cook and Kugler were supportive of the dollar.

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