Dollar Adds to this Week's Rally on Higher Bond Yields and Weaker Stocks

The dollar index (DXY00) today is up by +0.21% and posted a new 1.75-month high.  Political risks in France and Japan are undercutting the euro and yen, respectively, to the benefit of the dollar.  Higher bond yields today and weakness in stocks are also supporting the dollar.  However, gains in the dollar are limited by dovish comments from New York Fed President John Williams, who said he would back "lower rates this year" if the economy evolved as expected. The ongoing shutdown of the US government is ...