The dollar index (DXY00) on Tuesday rose by +0.07% and posted a 10-1/4 month high. Strength in the U.S. labor market supported the dollar after Aug JOLTS job openings unexpectedly rose. Also, hawkish comments Tuesday from Cleveland Fed President Mester and Atlanta Fed President Bostic pushed the 10-year T-note yield up to a 16-year high and supported the dollar. In addition, the weakness in stocks Tuesday boosted the liquidity demand for the dollar. The dollar fell back from its best levels after the yen rallied to a 1-1/2 week high on signs that Japan intervened in the currency market to support the yen.
Tuesday’s U.S. economic news was better than expected and bullish for the dollar. The Aug JOLTS job openings unexpectedly rose +690,000 to 9.610 million, showing a stronger labor market than expectations for a decline to 8.815 million.
