The dollar index (DXY00) today is down by -0.39% and posted a 1-week low. Strength in the yen is undercutting the dollar as the yen rose to a 13-month high against the dollar today. Also, heightened speculation that the Fed will cut the fed funds target range by 50 bp after the Tue/Wed FOMC meeting is weighing on the dollar. Swap markets show the chances of a 50 bp rate cut rose to 60% from 52% last Friday. A supportive factor for the dollar was today’s US Sep Empire manufacturing survey, which showed that general business conditions rose more than expected to a 2-1/3 year high.
The US Sep Empire manufacturing survey general business conditions index rose +16.2 to a 2-1/3 year high of 11.5, stronger than expectations of -4.0.
