The dollar index (DXY00) Tuesday rose by +0.47% and posted a 4-1/4 month high. Higher T-note yields Tuesday strengthened the dollar’s interest rate differentials and boosted the dollar. Comments Tuesday from Richmond Fed President Barkin supported the dollar when he said the US economy looks "pretty good." The dollar also extended 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 positioned to respond however the economy evolves.
