The dollar index (DXY00) Wednesday fell by -0.07%. The dollar weakened Wednesday as strength in stocks reduced liquidity demand for the dollar. Also, a decline in T-note yields Wednesday weighed on the dollar. Losses in the dollar were limited due to hawkish comments from Fed Chair Powell. Fed Chair Powell said he believes inflation is receding but “isn’t yet confident” that price gains are sustainably slowing to the Fed’s 2% goal. The markets are discounting the chances for a -25 bp rate cut at 5% for the July 30-31 FOMC meeting and 74% for the following meeting on Sep 17-18. EUR/USD ([^EURUS…