The dollar index (DXY00) on Tuesday fell by -0.08%. The dollar gave up modest gains on Tuesday and turned lower as T-note yields fell following dovish comments from Fed Governor Michelle Bowman, who stated that policymakers are in danger of falling behind the curve and need to act decisively to lower interest rates as the labor market weakens. Tuesday's weaker-than-expected reports on the September S&P manufacturing PMI and the September Richmond Fed manufacturing sentiment survey also weighed on the dollar.
The dollar initially moved higher on Tuesday after the US Q2 current account deficit came in smaller than expected, a supportive factor for the dollar. Also, comments from Fed Chair Powell were neutral for the dollar as he offered no hints on whether he would support a rate cut at next month's FOMC meeting.
