The dollar index (DXY00) Tuesday fell slightly by -0.04%. The dollar Tuesday gave up overnight gains and turned lower as T-note yields fell on the weaker-than-expected US May retail sales report. Also, Tuesday’s rally in the S&P 500 to a new record high curbed liquidity demand for the dollar.
The dollar Tuesday initially moved higher based on comments from New York Fed President Williams, who said the US economy is "moving in the right direction." Comments from other Fed presidents Tuesday were hawkish and supported the dollar as well after St. Louis Fed President Musalem, Boston Fed President Colins, Dallas Fed President Logan, and Richmond Fed President Barkin said the Fed needs more data before it can cut interest rates. Also, Tuesday’s stronger-than-expected report on US Apr manufacturing production was bullish for the dollar.
