The dollar index (DXY00) today is up +0.36%, recovering a bit from last Thursday’s 2-month low. The dollar is seeing support from today’s +3.5 bp rise in the 10-year T-note yield.
The dollar is also seeing support from hawkish Fed comments after Fed Governor Waller on Monday said that the recent economic data supports keeping interest rates on hold until more progress is seen on inflation. However, he said that the CPI may be subject to seasonal adjustment problems and that if inflation behaves as it did in 2024, the Fed can get back to cutting “at some point this year.”
