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Barchart
Barchart
Rich Asplund

UNCOVERED: Dollar climbs on yen weakness and a slide in stocks | History Defined

The dollar index (DXY00) Wednesday rose by +0.54%.  Wednesday's weakness in the yen boosted the dollar after dovish comments from BOJ Deputy Governor Himino undercut the yen.  Also, a slump in stocks Wednesday boosted some liquidity demand for the dollar.  In addition, the dollar is climbing on speculation investors are buying the dollar for month-end portfolio rebalancing.

The markets are discounting the chances at 100% for a -25 bp rate cut at the Sep 17-18 FOMC meeting and at 36% for a -50 bp rate cut at that meeting.

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