The dollar index (DXY00) Thursday fell to a 2-week low and finished down by -0.60%. Strength in the euro weighed on the dollar after EUR/USD rallied to a 2-week high on hopes that US-Russian talks could lead to the end of the war in Ukraine. Also, lower T-note yields on Thursday weighed on the dollar. Strength in stocks Thursday also reduced liquidity demand for the dollar.
Losses in the dollar were limited after President Trump ordered his administration to consider imposing reciprocal tariffs on numerous trading partners, raising concerns about inflation that could keep the Fed from cutting interest rates. Also, Thursday’s US economic news was hawkish for Fed policy and supportive of the dollar.
