Dollar Rises as Strong US Data Offset Weaker Global Markets

The US dollar index (DXY) rose by 0.23% today on signs of strength in the US economy.

July personal spending and income exceeded expectations, with a 0.2% monthly increase in spending and a 0.4% rise in income.

This news, combined with higher bond yields, has strengthened the dollar's interest rate differentials.

However, gains in the dollar are limited due to weaker-than-expected July capital goods new orders nondefense ex-aircraft and parts, which rose by only 0.2% month-over-month.