Dollar Weakens on Disappointing US Economic News

The dollar index (DXY00) on Tuesday fell to a 2.25-month low and finished down -0.21%.  The dollar was under pressure from Tuesday's Fed-friendly US economic reports on Nov payrolls, Oct retail sales, and Dec S&P manufacturing activity that bolster the outlook for the Fed to keep easing monetary policy. The dollar is also under pressure as the Fed boosts liquidity in the financial system, having begun purchasing $40 billion a month in T-bills, effective last Friday.  Finally, the dollar is also being und ...