The dollar index (DXY00) today is down by -0.02%. The dollar today is seeing downward pressure from weaker-than-expected US housing starts and building permits reports and from an unexpected decline in the University of Michigan US May consumer sentiment index to a 3-year low. Also, lower T-note yields today are undercutting the dollar. In addition, strength in stocks today has reduced liquidity demand for the dollar.
The dollar recovered from its worst levels after the University of Michigan US May inflation expectations unexpectedly rose, a hawkish factor for Fed policy. Also, positive comments from Atlanta Fed President Bostic supported the dollar when he said he expects the US economy to slow this year but not fall into recession.
