The dollar index (DXY00) today is down by -0.32%. The dollar gave up an early advance today and turned lower after the University of Michigan March US consumer sentiment index was revised downward to a 2-1/3 year low. Also, today's US economic news showed that Feb personal spending rose less than expected, a negative factor for the dollar. In addition, Thursday evening's comments from Richmond Fed President Barkin weighed on the dollar when he said rapid changes to US trade policy have created "a sense of instability" in the business community, and the associated decline in sentiment could "quiet demand."
The dollar today initially moved higher as trade tensions are weighing on stocks and boosting liquidity demand for the dollar. Also, hawkish comments Thursday evening from Boston Fed President Collins boosted the dollar when said that it looks "inevitable" that tariffs will boost inflation. In addition, the University of Michigan March US inflation expectations indicator was revised higher, a hawkish factor for Fed policy.
