The dollar index (DXY00) Tuesday rose by +0.83%. The dollar moved higher on Tuesday on an increase in liquidity demand for the dollar as stocks fell after President Trump downplayed the chance of an early end to the Israel-Iran war and said he wants "unconditional surrender" from Iran. Gains in the dollar accelerated Tuesday afternoon on an increase in safe-haven demand as President Trump was set to meet his national security team, fueling speculation that the US may be on the verge of joining the attack against Iran.
The dollar rallied Tuesday despite weaker-than-expected US retail sales and NAHB housing market reports. The dollar continues to be undercut by expectations of weaker US economic growth and reduced foreign investment in the US caused by President Trump's tariffs.
