The dollar index (DXY00) Tuesday fell by -0.62%. The dollar was under pressure Tuesday on a report from Blomberg that said President-elect Trump’s incoming economic team is discussing a gradual approach to raising tariffs that will boost negotiating leverage and avoid inflation. The dollar added to its losses Tuesday on the weaker-than-expected US Dec PPI report, a dovish factor for Fed policy. The dollar remained lower Tuesday as stocks rallied, which curbed liquidity demand for the dollar.
US Dec PPI final demand rose +0.2% m/m and +3.3% y/y, weaker than expectations of +0.4% m/m and +3.5% y/y. Also, the Dec PPI ex-food and energy was unchanged m/m and rose +3.5% y/y, which was weaker than the expectations of +0.3% m/m and +3.8% y/y.
