The dollar index (DXY00) today is up by +0.40% at a 4-1/4 month high. Higher T-note yields today have strengthened the dollar’s interest rate differentials and boosted the dollar. Comments today from Richmond Fed President Barkin were supportive for the dollar when he said the US economy looks "pretty good." The dollar is also extending last week’s post-election rally on speculation that T-note yields will increase as inflation increases due to President-elect Trump’s pro-tariff policies.
Richmond Fed President Barkin said the US economy looks "pretty good" and the Fed is in position to respond however the economy evolves.
