The dollar index (DXY00) Monday fell by -0.07% and posted a 5-week low. Monday’s tumble in T-Note yields weakened the dollar’s interest rate differentials and weighed on the dollar. The dollar also came under pressure when President Trump on Sunday threatened to impose tariffs on Colombia after the country refused to take in deported immigrants from the US. However, the dollar recovered after a deal was reached with Colombia to take the deported migrants. The dollar also gained some support from strength in Monday’s US economic news after the Dec Chicago Fed national activity index rose to a 7-month high, and Dec new home sales and the Jan Dallas Fed manufacturing outlook survey rose more than expected.
The US Dec Chicago Fed national activity index rose +0.16 to a 7-month high of 0.15, stronger than expectations of -0.06.
