The dollar index (DXY00) is up by +0.55% today, just below Monday’s 1.5-year high. Higher T-note yields today have strengthened the dollar’s interest rate differentials as the 10-year T-note yield rose to a 24-year high of 5.36%. Also, higher crude oil prices today have raised inflation expectations and could prompt the Fed to tighten monetary policy, which supports the dollar.
US MBA mortgage applications fell -4.2% in the week ended October 2, with the purchase mortgage sub-index down -2.1% and the refinancing mortgage sub-index down -7.5%. The average 30-year fixed-rate mortgage rose +19 bp to a 2.75-year high of 7.49% from 7.30% the prior week.
