The dollar index (DXY00) today is down by -0.37%. The dollar is under pressure today from a stronger yuan, which rose to a 9.5-month high against the dollar. The dollar also remains under pressure due to concern over the Fed’s independence and fears about capital flight with President Trump’s move to fire Fed Governor Lisa Cook. If Mr. Trump succeeds in firing Fed Governor Cook, foreign investors may lose faith in the Fed and the dollar and swap their dollar assets into non-dollar investments.
The dollar recovered from its worst level today on signs that the US economy is holding up after an upside revision showed Q2 GDP expanded more than expected. Also, concerns about the US labor market eased after weekly initial unemployment claims fell as expected.
