
The dollar index (DXY00) Tuesday tumbled to a 13-month low and finished down by -0.27%. Recent Fed comments and Fed-friendly economic news seemed to confirm that the Fed will begin cutting interest rates next month, a negative factor for the dollar. Also, strength in the British pound (^GBPUSD) weighed on the dollar after GBP/USD rallied to a 2-1/3 year high Tuesday.
Higher T-note yields Tuesday limited losses in the dollar. Also, heightened geopolitical risks in the Middle East supported safe-haven demand for the dollar. Tuesday’s US economic news was mixed for the dollar.