The dollar index (DXY00) on Tuesday rose to a 1-week high and finished up by +0.25%. Weakness in the euro and the British pound on Tuesday was supportive for the dollar after both currencies fell to 1-week lows. Also, hawkish Fed comments boosted the dollar on Tuesday after Chicago Fed President Austan Goolsbee warned that services inflation remains elevated and Fed Governor Michael Barr said it will likely be appropriate for the Fed to hold interest rates steady ”for some time.” The dollar fell back from its best level after stocks recovered from early losses and moved higher, reducing liquidity demand for the dollar.
The US Feb Empire manufacturing general business conditions survey fell -0.6 to 7.1, a smaller decline than expectations of 6.2.
