The dollar index (DXY00) on Tuesday rose by +0.42%. The dollar moved higher on Tuesday as the ongoing war with Iran drags on, boosting safe-haven demand for the dollar. Also, Tuesday's +4% jump in crude oil prices may stoke inflation and prompt the Fed to tighten monetary policy, a supportive factor for the dollar. The dollar added to its gains after the Mar S&P manufacturing PMI unexpectedly increased.
Gains in the dollar accelerated on Tuesday amid concerns about the escalation of the Iran war. The Wall Street Journal reported that Saudi Arabia and the United Arab Emirates (UAE) have taken steps toward joining the Iran war, potentially signaling an escalation of the fighting. The Wall Street Journal also reported that the US is considering deploying a brigade combat team of about 3,000 from the Army's 82nd Airborne Division to the Middle East.
