The dollar is sliding.
The US dollar index was down by 0.4% at 93.28 at 8:27 a.m. ET.
It has lost about 9% since President Donald Trump’s inauguration.
“The US dollar has a softer tone today, and it was that way even for the European PMI,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman, in commentary.
“The greenback eased further after the upside momentum faded yesterday,” he continued. “The heavier tone in Asia seemed spurred by a hedge fund manager’s call that Minneapolis Fed President, and among the most dovish members of the FOMC, Kashkari would be the next Fed chair.”
DoubleLine Capital CEO Jeffrey Gundlach told Bethany McLean at Vanity Fair’s New Establishment Summit on Tuesday that Kashkari, currently the president of the Federal Reserve Bank of Minneapolis, should be the next Fed chair because “he’s the most easy money guy at the Fed right now.” He added, “I think I’m the only guy on God’s green earth that thinks it will be Neel Kashkari.”
Meanwhile, Bloomberg’s Jennifer Jacobs and Saleha Mohsin reported Tuesday that Trump’s senior advisors have produced a short list of candidates for the position: Janet Yellen, current Fed chair; Gary Cohn, National Economic Council chair and former Goldman Sachs chief operating officer; Kevin Warsh, former Fed board governor; Jerome Powell, current Fed governor; John Taylor, economist at Stanford.
In economic data news, ADP nonfarm employment came in at 135,000 for September, in line with the Bloomberg consensus.
Market watchers pay attention to the ADP reading because it sometimes foreshadows what the jobs number will be the following Friday.
As for the rest of the world, here was the scoreboard at 8:32 a.m. ET:
- The euro was up by 0.2% at 1.1770 against the dollar. German services PMI came in at 55.6 in September, in line with expectations and unchanged from the prior month.
- The British pound was higher by 0.3% at 1.3267 against the dollar. British services PMI surprised on the upside, coming in at 53.6, above expectations of 53.2.
- The Indian rupee was up by 0.6% at 65.090 per dollar. India’s central bank held rates at 6.00%, as most were expecting.
- The Russian ruble was stronger by 0.5% at 57.6195 per dollar, while Brent crude oil, the international benchmark, was down by 0.2% at $US55.88 per barrel. Market services PMI came in at 55.2 in September, up from the prior month’s 54.2.
- The Japanese yen was up by 0.3% at 112.49 per dollar.