For a long time, the dollar didn’t get much respect, but now that it’s standing tall again, it’s become a key focus for markets as U.S. economic data is beginning to look a shade better than last month.
Traders say the dollar is also rising because other central banks are jumping on the liquidity bandwagon, with Israel the latest to cut rates, following South Korea, India and Australia in just the last few days. And of course, the Bank of Japan’s massive easing program has been rocking world markets, sending the dollar/yen briefly above 102 for the first time in four years Monday. The dollar index rose to 83.276 from 83.132.
The currency story should remain of interest Tuesday, even as just a trickle of data is expected in U.S. markets. There is the NFIB small business survey at 7:30 a.m. and import prices for April at 8:30 a.m. ET.
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