The dollar index (DXY00) today is down by -0.15%. The dollar today is slightly lower on concern that President Trump’s 25% tariffs on all steel, aluminum, and finished metals imports into the US will encourage retaliation that curbs US economic growth. Losses in the dollar are limited by higher T-note yields and weakness in stocks that have boosted liquidity demand for the dollar. Also, hawkish comments today from Fed Chair Powell and Cleveland Fed President Hammack were positive for the dollar when they said interest rates are on hold until inflation falls further.
Fed Chair Powell said, "With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance."
