The dollar index (DXY00) is up by +0.03% today. The dollar found support from today's +3% jump in WTI crude oil prices, which raises inflation expectations and could prompt the Fed to pursue tighter monetary policy, a supportive factor for the dollar. Today's US economic news was mixed for the dollar, with housing starts and consumer sentiment stronger than expected, but building permits and manufacturing production weaker than expected.
The dollar fell from its best level today after stocks recovered from sharp losses, which curbed liquidity demand for the dollar. Also, lower T-note yields today have weakened the dollar's interest rate differentials.
