The dollar index (DXY00) today is down by -0.59% at a 7-1/2 month low. The dollar today is falling on a decline in T-note yields. Also, strength in stocks today has reduced liquidity demand for the dollar. In addition, dovish comments from Atlanta Fed President Bostic weighed on the dollar when he said it's possible that more than one interest rate cut by the Fed may now be needed by year-end. Losses in the dollar accelerated after Fed Chair Powell said, "The time has come for policy to adjust." The dollar declined despite today’s stronger-than-expected US July new home sales report.
US July new home sales rose +10.6% m/m to a 14-month high of 739,000, stronger than expectations of 623,000.
