The dollar index (DXY00) Wednesday fell by -0.20%. The dollar on Wednesday gave up an early advance and fell to a 1-week low as the ceasefire continues to hold between Israel and Iran, reducing safe-haven demand for the dollar. Also, Wednesday’s weaker-than-expected US new home sales report was negative for the dollar.
The dollar initially moved higher Wednesday on hawkish Fed comments from Kansas City Fed President Schmid, who said the Fed should wait to see how tariffs and other policies impact the economy before adjusting interest rates. Mr. Schmid’s comments echoed hawkish remarks this week from other Fed officials, including Fed Chair Powell, New York Fed President Williams, and Atlanta Fed President Bostic, who stated that they are in no hurry to cut interest rates.
