The dollar index (DXY00) today is up by +0.23%. Weakness in the yen is underpinning the dollar as the yen tumbled to a 1.5-year low against the dollar today. Gains in the dollar accelerated today after US Oct new home sales fell less than expected and after St. Louis Fed President Alberto Musalem said the US economy is pretty robust and that he expects above-potential growth.
Gains in the dollar are limited after US December core consumer prices rose less than expected, a dovish factor for Fed policy. The dollar still has some negative carryover from Monday, amid concerns over Fed independence, after Fed Chair Powell said the Justice Department's threat of criminal charges against the Federal Reserve over his June testimony on Fed headquarters renovations is the consequence of the Fed not going along with President Trump's calls for lower interest rates.
