
The dollar index (DXY00) Tuesday fell by -0.24% and posted a 2-month low on lower T-note yields. Also, strength in stocks on Tuesday reduced the liquidity demand for the dollar. The Chinese yuan strengthened against the dollar Tuesday after China signaled more economic support measures.
Comments Tuesday from New York Fed President Williams were neutral for the dollar when he said he "doesn't have a recession in his forecast," but has lowered his growth forecasts "a little bit" for next year as some of the tightening of monetary policy and some effects of credit tightening will weigh on demand in 2024.