The dollar index (DXY00) gave up an early gain and ended the day down -0.18%. The dollar saw some early safe-haven support but faded during the day as US interest rate differentials sagged. The 10-year T-note yield on Thursday plunged by -17 bp, and the 2-year T-note yield fell by -16 bp. Also, the odds of a Fed rate hike at next week’s meeting fell to 7% on Thursday from 15% on Wednesday.
There was early safe-haven support for the dollar on Middle East tensions after there were several attacks in the past two days by the Houthi militia on targets in Saudi Arabia, including an oil field, a port, and an airport in Dammam. The US State Department also said Wednesday afternoon that it was evacuating non-essential personnel and families from Saudi Arabia.
