The dollar index (DXY00) on Tuesday fell by -0.47% and posted a 1.5-week low. The dollar was under pressure Tuesday from lower T-note yields. Losses in the dollar accelerated after the US July Richmond Fed manufacturing index unexpectedly fell to an 11-month low.
The dollar found some underlying support Tuesday on comments from Treasury Secretary Bessent, who said, “he sees no reason for Fed Chair Powell to step down right now.” The dollar has been under pressure due to concern President Trump might fire Powell, which could prompt foreign investors to shun dollar assets over questions of the Fed’s independence.
