The dollar index (DXY00) on Monday rallied to a 4-1/2 month high and finished up +0.48%. The dollar initially moved higher Monday on last Friday’s stronger-than-expected US Feb personal spending report. Also, comments last Friday from Fed Chair Powell supported the dollar when he said the Fed is in “no hurry” to cut interest rates. The dollar extended its gains on Monday’s stronger-than-expected Mar ISM manufacturing index, which was hawkish for Fed policy.
The US Mar ISM manufacturing index rose +2.5 to 50.3, stronger than expectations of 48.3 and the highest level in 1-1/2 years. The Mar ISM prices paid sub-index rose +3.3 to a 1-1/2 year high of 55.8, stronger than expectations of 53.0.
