The dollar index (DXY00) on Tuesday fell by -0.20%. The dollar Tuesday fell back from a 4-1/2 month high and posted moderate losses. Tuesday's strength in the euro sparked long liquidation in the dollar. The dollar extended its losses after Fed Presidents Daly and Mester expressed their support for three Fed rate cuts this year.
The dollar had support from Tuesday’s better-than-expected US factory orders and job openings reports. Also, higher bond yields were bullish for the dollar after the 10-year T-note yield Tuesday rose to a 4-month high.
