The dollar index (DXY00) today is up by +0.47% on stronger-than-expected US economic reports that were hawkish for Fed policy and that drove the 10-year T-note yield sharply higher by +10 bp. Today’s economic reports helped reduce expectations for a 50 bp rate cut by the Fed at the September 17-18 FOMC meeting to 28% from 75% last week. Today’s rally in stocks is curbing liquidity demand for the dollar. Also, dovish Fed comments undercut the dollar when Atlanta Fed President Bostic said he is “open” to an interest rate cut in September, and St. Louis Fed President Musalem said, “The time may b…