The dollar index (DXY00) on Tuesday spent most of the day on the downside, then recovered a bit in the afternoon, ending little changed. The dollar came under downward pressure from Tuesday's nearly -12% plunge in oil prices, which was dovish for Fed policy. However, the dollar had underlying support from the +5.6 bp rise in the 10-year T-note yield.
Tuesday's existing home sales report was supportive of the dollar. US Feb existing home sales rose by +1.7% m/m to 4.09 million, stronger than expectations for a decline to 3.88 million.
