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Barchart
Barchart
Rich Asplund

HISTORICAL FACTS: Dollar falls slightly as t note yields drop and stocks recover - The Untold Story

The dollar index (DXY00) Tuesday fell by -0.07%.  The dollar on Tuesday posted modest losses on the weaker-than-expected US Oct housing starts and building permits reports.  Also, lower T-note yields Tuesday weakened the dollar’s interest rate differentials and weighed on the dollar.  In addition, Tuesday’s stock recovery curbed liquidity demand for the dollar. 

Losses in the dollar were limited as geopolitical risks boosted safe-haven demand for the dollar after Ukraine carried out its first strike on a border region in Russia using Western-supplied missiles.  Also, Russian President Putin approved an updated nuclear doctrine expanding the conditions for using atomic weapons.

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