The dollar index (DXY00) is up by +0.17% today. The dollar is moving higher today as escalation of hostilities between the US and Iran is boosting crude oil prices, which raises inflation expectations that could prompt the Fed to tighten monetary policy, a supportive factor for the dollar. The dollar also received some safe-haven support today on signs of widening of the conflict in the Middle East after Houthi rebels said they will impose a maritime blockade on Saudi Arabia in retaliation for what they say is the kingdom's siege on the Yemeni capital. Strength in stocks today has reduced liquidity demand for the dollar, limiting gains in the currency.
Today's US economic news was slightly negative for the dollar after the Jun leading indicators fell -0.2% m/m, weaker than expectations of -0.1% m/m.
