The dollar index (DXY00) on Monday fell by -0.04%. The dollar gave up early gains Monday and turned slightly lower as the euro strengthened on positive Eurozone economic news. On Monday, the dollar initially moved higher as weakness in stocks boosted some liquidity demand for the dollar. Also, higher T-note yields on Monday have strengthened the dollar’s interest rate differentials.
Monday’s comments from Atlanta Fed President Bostic were on the hawkish side and positive for the dollar when he said he expects that the Fed 's first interest rate cut in Q3 will be followed by a pause to assess how the shift in policy is affecting the economy. Bostic added he was worried that businesses have too much exuberance and could unleash a burst of new demand after a rate cut that adds to price pressures.
