The dollar index (DXY00) Wednesday rose by +0.37% and posted a 3-week high. Hawkish Fed commentary Wednesday pushed T-note yields higher and boosted the dollar. Chicago Fed President Goolsbee, Minneapolis Fed President Kashkari, and St. Louis Fed President Musalem all said that US trade policies could boost inflation and require the Fed to hold interest rates steady for longer. Also, the weakness in stocks on Wednesday boosted liquidity demand for the dollar. In addition, weakness in the British pound benefited the dollar after weaker-than-expected UK Feb CPI knocked GBP/USD down to a 2-week low. Gains in the dollar were limited after US Feb core capital goods orders unexpectedly declined.
US MBA mortgage applications fell -2.0% in the week ended March 21, with the purchase mortgage sub-index up +0.7% and the refinancing mortgage sub-index down -5.3%. The average 30-year fixed rate mortgage fell -1 bp to 6.71% from 6.72% in the prior week.
