The dollar index (DXY00) Wednesday fell by -0.43%. The dollar on Wednesday gave up an overnight advance and turned lower after the US May ADP employment change rose less than expected and posted its smallest increase in more than two years, a sign of labor market weakness and a dovish factor for Fed policy. Also, falling T-note yields on Wednesday weakened the dollar's interest rate differentials.
Losses in the dollar accelerated Wednesday after the US May ISM services index unexpectedly contracted for the first time in 11 months and after the Fed's Beige Book hinted at stagflation with a slowdown of economic activity and rising prices.
