The dollar index (DXY00) Wednesday fell by -0.51% and posted a 3-3/4 month low. The dollar is under pressure after US presidential candidate Trump said the recent strength of the dollar had hurt American competitiveness and that the weakness of the yen and yuan was a trading advantage for Japan and China. His comments bolstered speculation he may adopt policies to reduce the dollar's value if he becomes president. The dollar maintained moderate losses despite stronger-than-expected reports on US Jun housing starts, Jan manufacturing production, and hawkish comments from several Fed members. The Fed Beige Book was dovish and negative for the dollar.
US Jun housing starts rose +3.0% m/m to 1.353 million, stronger than expectations of 1.300 million. Jun building permits, a proxy for future construction, rose +3.4% m/m to 1.446 million, stronger than expectations of 1.400 million.
