
The dollar index (DXY00) is sharply lower today by 1.13% at a 4-week low. The dollar is plummeting today after the US and Iran agreed to a ceasefire, curbing safe-haven demand for the dollar. Also, today's surge in equity markets has reduced liquidity demand for the dollar. In addition, sharply lower T-note yields today have weakened the dollar's interest rate differentials.
Swaps markets are discounting the odds at 2% for a +25 bp rate hike at the April 28-29 FOMC meeting.