Dollar Tumbles on Strong Stocks and Weaker Economic Reports

The US dollar index fell by -0.17% on Wednesday, weighed down by strong stocks and weak economic reports.

The S&P 500 climbed to a new record high, reducing demand for dollar liquidity and causing the dollar to slide.

Weaker-than-expected reports on July ADP employment and July ISM services were also bearish for the dollar, showing a +44,000 increase in US jobs but missing expectations of +65,000, and an index reading of 54.1, down from 54.5 as anticipated.

Kansas City Fed President Jeff Schmid and Minneapolis Fed President Neel Kashkari made hawkish comments, saying tighter Fed policy is needed to reduce inflation, which limited losses in the dollar.