The dollar index (DXY00) Friday fell by -0.20% and posted a 4-month low. The dollar has fallen every day this week and remains under pressure due to the negative impact of US tariffs on the US economy. Losses in the dollar accelerated Friday on the dovish US Feb payroll report that showed nonfarm payrolls and average hourly earnings rose less than expected, and the unemployment rate unexpectedly moved higher.
However, losses in the dollar Friday were limited due to hawkish Fed comments. Fed Chair Powell said the US economy continues to be in a good place" and the Fed doesn't need to rush to adjust policy and Fed Governor Kugler said it's likely appropriate for the Fed to hold interest rates steady for "some time." Also, Atlanta Fed President Bostic said he favors holding monetary policy steady for the foreseeable future.
