The dollar index (DXY00) today is down by -0.45%. The dollar is under pressure today after the British pound, the euro, and Japanese yen rallied when the BOE, ECB, and BOJ made hawkish comments about the inflationary aspects of soaring energy prices from the war in Iran. Losses in the dollar accelerated today after the US Jan new home sales fell more than expected to a 3.25-year low.
Losses in the dollar are limited as today's stock market weakness has boosted some liquidity demand for the dollar. Also, today's US economic news on weekly jobless claims and the Mar Philadelphia Fed business outlook survey were hawkish for Fed policy. The dollar also has carryover support from Wednesday, when Fed Chair Powell said there will be no Fed rate cut unless there is progress on inflation.
