The dollar index (DXY00) today is slightly lower by -0.09% following two sessions of small gains. The dollar is slightly lower despite today’s +2.2 bp rise in the 10-year T-note yield and today’s weakness in stocks.
The dollar today gave up its small gain seen on Tuesday on the slightly hawkish U.S. CPI report. The Feb core CPI dipped to a 2-3/4 year low of +3.8% y/y. However, the Feb headline CPI of +3.2% y/y was slightly above expectations of +3.1% and was 0.2 points above last June’s 2-3/4 year low of +3.0%. Both CPI measures remain well above the Fed’s +2% inflation target.
