The dollar index (DXY00) Wednesday fell by -0.31% and posted a new 7-1/2 month low. Strength in stocks Wednesday reduced liquidity demand for the dollar. Also, the larger-than-expected downward revision to US payrolls for the year ended in March showed less job growth in the US labor market than was initially reported, a dovish factor for Fed policy. The dollar sank to its lows Wednesday afternoon when the July 30-31 FOMC meeting minutes showed that a "vast majority" of officials saw a rate cut in September as likely appropriate.
The US Bureau of Labor Statistics (BLS) revised US payrolls down by -818,000 for the year through March, a bigger decline than expectations of -600,000 and the largest downward revision since 2009, signaling less job growth than was originally reported.
