The dollar index (DXY00) today is down by -0.17%. Today’s rebound in equity markets has reduced liquidity demand for the dollar. The dollar is also being pressured by some negative carryover from Thursday, when weaker-than-expected US labor market news boosted the chance of a Fed rate cut at next month’s FOMC meeting to 18% from 8% on Wednesday. Losses in the dollar are limited after the University of Michigan US Feb consumer sentiment index unexpectedly rose to a 6-month high.
The dollar sank to a 4-year low last Tuesday when President Trump said he’s comfortable with the recent weakness in the dollar. Also, the dollar remains under pressure as foreign investors pull capital from the US amid a growing budget deficit, fiscal profligacy, and widening political polarization.
