The dollar index (DXY00) Tuesday climbed to a 2-week high and finished up +0.16%. The plunge in stocks Tuesday prompted some liquidity demand for the dollar. However, gains in the dollar were limited by Tuesday’s weaker-than-expected US ISM manufacturing and construction spending reports.
The US Aug ISM manufacturing index rose +0.4 to 47.2, weaker than expectations of 47.5. The Aug ISM price paid sub-index unexpectedly rose +1.1 to 54.0 versus expectations of a decline to 52.0, which was hawkish for Fed policy.
