The U.S. dollar index (DXY00) reached a three-week high on Wednesday but ended the day down 0.21%. This decline followed President Trump’s comments about potentially firing Federal Reserve Chair Powell, which initially spooked foreign investors and contributed to a sell-off in dollar-denominated assets.
In economic data released Wednesday, the June producer price index (PPI) showed a year-over-year increase of 2.3%, slightly below expectations of 2.5%. Additionally, U.S. industrial production for June increased by 0.3%, exceeding market expectations of 0.1%. The New York Fed services business activity index rose to -9.3 in July from -13.2 in June.
On the global front, the euro gained 0.21% against the dollar, buoyed by a Eurozone trade surplus of 16.2 billion euros, and the Japanese yen fell by 0.60% due to capital repatriation speculation amid upcoming elections. August gold rose by 0.67%, supported by a lower dollar and safe-haven demand.
