The dollar is dipping

The dollar is weaker on Tuesday, continuing to backpedal on gains made last week.

The US dollar index was down by 0.4% at 93.36 at 8:06 a.m. ET.

“Markets have shifted back to a risk-on mode, which is weighing on the dollar,” Mark McCormick, North American head of FX strategy at TD Securities, said in emailed commentary.

“[T]his comes on the heels of the sharp dollar sell-off in the wake of NFP and leaves us looking to add fresh short exposure this week,” he added.

In US economy news, Tuesday will see two Fed presidents take the mic. Minneapolis Fed’s Neel Kashkari and the Dallas Fed’s Robert Kaplan will speak at 10 a.m. ET and 8 p.m. ET, respectively.

Fed rate-hike odds, meanwhile, keep soaring. The market is now pricing in a 76.7% chance that the Fed will hike rates before the end of the year, up from about 20% just two months ago, according to Bloomberg data.

The US dollar index is down by about 9% since US President Donald Trump’s inauguration in January.

As for the rest of the world, here was the scoreboard at 8:14 a.m. ET:

  • The Japanese yen is up by 0.3% at 112.36 per dollar. Earlier, Japan’s Economy Watchers Survey index came in at 51.3 for September, above the previous month’s reading of 49.7. The improvement “suggests that the slowdown in consumer spending in the third quarter is unlikely to last,” Marcel Thieliant, senior Japan economist at Capital Economics, said in a note.
  • The British pound is higher by 0.4% at 1.3195 against the dollar. Data showed that manufacturing production rose 0.4% month-over-month in August, above expectations of a 0.2% uptick.
  • The Russian ruble is stronger by 0.8% at 57.8810 per dollar, while Brent crude oil, the international benchmark, is up by 0.8% at $US56.23 per barrel.
  • The euro is higher by 0.5% at 1.1796 against the dollar.
  • The Indian rupee is up by 0.4% at 65.164 per dollar.

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