
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.