The dollar index (DXY00) today is up by +0.09%. The dollar is climbing today on a stronger-than-expected US Mar retail sales and Mar pending home sales reports. The dollar also has support on signs that Fed Chair nominee Kevin Warsh will support an independent Fed and prioritize low inflation. Politico reported that Fed Chair nominee Warsh’s prepared statement before the Senate Banking Committee later today will say that he is committed to ensuring that the conduct of monetary policy remains “strictly independent” and he is committed to keeping inflation in check, saying price stability is a mandate for the Fed “without excuse or equivocation.”
Gains in the dollar are limited today as stock strength reduces liquidity demand for the currency. Also, hopes that US-Iran negotiations will lead to an end to hostilities have curbed safe-haven demand for the dollar after Iran said it was sending a team to Pakistan for negotiations with the US.
