The dollar index (DXY00) this morning is down by -0.17%. The dollar is under pressure today from lower T-note yields and strength in stocks, which reduces liquidity demand for the dollar. The dollar is also being undercut by uncertainty ahead of this week’s US inflation reports.
Today's hawkish comments from Fed Vice Chair Jefferson supported the dollar when he said, “In light of the attenuation in progress, in terms of getting inflation down to our target, it is appropriate that we maintain the policy rate in restrictive territory."
