The dollar index (DXY00) Friday fell to a 1-week low and finished down by -0.24%. Dovish comments Friday from former New York Fed President Dudley knocked bond yields lower and weighed on the dollar when he said he sees “a strong case for a 50 bp cut” in interest rates at next week’s FOMC meeting. Dudley’s comments pushed the chances for a 50 bp rate cut at next week’s FOMC meeting in the swaps market up to 53% from 17% on Wednesday. Strength in the yen also undercut the dollar as the yen jumped to an 8-1/2 month high against the dollar Friday. Finally, Friday’s stock rally curbed liquidity de…