The dollar index (DXY00) Monday fell by -0.56% and posted a 7-1/2 month low. The dollar came under pressure Monday on dovish comments from San Francisco Fed President Daly and Minneapolis Fed President Kashkari, who signaled they would be open to a Fed rate cut at the September FOMC meeting. Also, central bank divergence has boosted the yen to a 1-1/2 week high against the dollar Monday from expectations for the Fed to begin cutting interest rates next month while the BOJ is expected to keep raising rates. The dollar extended its losses Monday after US July leading indicators fell more than expected.
US July leading indicators fell -0.6% m/m, weaker than expectations of -0.4% m/m.
