The dollar index (DXY00) on Tuesday rose slightly by +0.03%. The dollar recovered from overnight losses and climbed to a 1.5-week high due to stronger T-note yields. The 10-year T-note yield rose to a 2-week high on Tuesday at 4.43%, which strengthened the dollar's interest rate differentials. Weakness in the yen also benefited the dollar as the yen tumbled to a 2-week low against the dollar on Tuesday. Gains in the dollar were limited as stocks stabilized after President Trump late Monday signaled that he is open to further negotiations on tariffs.
Late Monday, President Trump said he's still open to additional negotiations and that the August 1 deadline for higher tariff rates was "not 100% firm," adding, "we're not going to be unfair" and would look favorably on countries continuing to offer additional concessions.
