The dollar index (DXY00) Tuesday rose by +0.12%. The dollar Tuesday recovered from early losses and posted moderate gains on expectations for the Fed to raise interest rates by 25 bp at next week’s FOMC meeting. Also, weakness in the euro boosted the dollar as EUR/USD retreated on dovish comments from ECB Governing Council member Knot.
The dollar Tuesday initially moved lower on the weaker-than-expected Jun Retail sale and Jun manufacturing production reports. Also, lower T-note yields and a rally in stocks Tuesday undercut the dollar.
