The dollar index (DXY00) Wednesday rose by +0.05%. The dollar Wednesday recovered from early losses and climbed to a 1-week high after the as-expected US Aug core 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, a rebound in T-note yields Wednesday supported modest gains in the dollar.
The dollar Wednesday 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.
