The dollar index (DXY00) this morning is up by +0.03% and posted a 1-week high. Strength in T-note yields today is supporting the dollar on today’s hawkish US Feb import price index ex-petroleum and Feb manufacturing production reports, causing market participants to slightly dial back expectations for a Fed rate cut within the next few months. Also, the weakness in stocks today has boosted some liquidity demand for the dollar.
Gains in the dollar are limited after the US Mar Empire manufacturing survey of general business conditions index fell more than expected, and the University of Michigan US Mar consumer sentiment index unexpectedly declined.
