The dollar index (DXY00) today is down by -0.57%. The dollar fell from a 1.5-week high today and turned lower on dovish comments from Fed Chair Powell, who said downside risks to employment are rising and the shifting balance of risks may warrant adjusting monetary policy. Falling T-note yields today are also weighing on the dollar after the 10-year T-note yield fell to a 1-week low of 4.248%. The dollar initially moved higher today on hawkish comments from Boston Fed President Susan Collins, who said that modestly restrictive Fed policy is appropriate.
Fed Chair Powell said, "The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance. Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance."
