Dollar Pressured by Fed Rate Cut Expectations

The dollar index (DXY00) today is down by -0.16%.  The dollar gave up an early advance and turned lower today after bond yields declined on a weaker-than-expected US Aug PPI report, which cemented expectations for at least a 25 bp rate cut by the Fed at next week's FOMC meeting.  The dollar initially moved higher today on an increase in safe-haven demand from an escalation of geopolitical risks in Europe after Poland shot down Russian drones that had entered its airspace. Limiting the upside in the dollar ...