The dollar index (DXY00) Monday rose slightly by +0.03% on hawkish Fed comments that pushed T-note yields higher. The dollar gave up most of its gains as strength in stocks reduced the liquidity demand for the dollar. Also, a negative carryover from last Friday weighed on the dollar when U.S. July payrolls rose less than expected, bolstering expectations for the Fed to pause its interest rate hike campaign.
Monday’s U.S. economic news supported the dollar after Jun consumer credit rose +$17.847 billion, stronger than expectations of +$13.0 billion.
