The dollar index (DXY00) today is down by -0.33%. The dollar added to Thursday's sharp losses today, falling to a 2-week low. The strength in other G-10 currencies is weighing on the dollar today, with the euro climbing to a 1.5-week high and the yen jumping to a 2-month high. Also, today's 5% plunge in crude oil prices has eased inflation expectations, a dovish factor for Fed policy, and a negative factor for the dollar. Losses in the dollar accelerated today on the weaker-than-expected Apr ISM manufacturing report.
Heightened US-Iran tensions are boosting demand for the dollar as a safe-haven. The US and Iran are locked in a battle for control of the Strait of Hormuz, with both sides blocking the waterway to gain leverage during an extended ceasefire. President Trump said he was sticking with a naval blockade of Iran, and Iran's Supreme Leader, Mojtaba Khamenei, vowed not to give up Iran's nuclear or missile technologies and said Iran would keep control of the Strait of Hormuz.
