The dollar index (DXY00) Tuesday rose by +0.02%. The dollar Tuesday recovered from early losses and posted modest gains. The dollar Tuesday erased losses and tracked T-note yields higher on hawkish comments from Minneapolis Fed President Kashkari, who said he's "not ready to say that we're done" raising interest rates." Also, the weakness in stocks Tuesday boosted the liquidity demand for the dollar.
Tuesday’s U.S. economic news was mixed for the dollar. On the positive side, Jul retail sales rose +0.7% m/m, stronger than expectations of +0.4% m/m. Also, the Jul import price index ex-petroleum was unchanged m/m, stronger than expectations of -0.2% m/m. On the negative side, the Aug Empire manufacturing survey general business conditions fell -20.1 to -19.0, weaker than expectations of -1.0. Also, the Aug NAHB housing market index unexpectedly fell -6 to 50, weaker than expectations of no change at 56.
