The dollar index (DXY00) today is down by -0.43%. The dollar is under pressure today on a report from Blomberg that said President-elect Trump’s incoming economic team is discussing a gradual approach to raising tariffs, to boost negotiating leverage and avoid inflation. The dollar added to its losses after T-note yields fell on the weaker-than-expected US Dec PPI report, a dovish factor for Fed policy.
US Dec PPI final demand rose +0.2% m/m and +3.3% y/y, weaker than expectations of +0.4% m/m and +3.5% y/y. Also, Dec PPI ex-food and energy was unchanged m/m and rose +3.5% y/y weaker than expectations of +0.3% m/m and +3.8% y/y.
