The dollar index (DXY00) today is down -0.18%. Strength in the euro today is weighing on the dollar as EUR/USD rose on hawkish comments from ECB Governing Council member Nagel, who said central banks may have to raise interest rates should international tensions intensify and lead to more significant inflationary pressures.
Today’s unexpected increase in the US Nov NAHB housing market index to a 7-month high supported the dollar. Also, higher T-note yields today have strengthened the dollar’s interest rate differentials and are limiting losses in the dollar.
