The dollar index (DXY00) rose to a 2-month high today and is up by +0.20%. The dollar is climbing today as T-note yields rise. The dollar is also supported as hopes fade for an imminent end to the US-Iran war, which could keep crude prices and inflation expectations elevated, potentially prompting the Fed to keep tightening monetary policy, a bullish factor for the dollar.
Dollar gains are limited today by weaker-than-expected US economic news on Aug JOLTS job openings and Sep consumer confidence. Also, today’s -1% decline in WTI crude oil has eased inflation expectations and is dovish for Fed policy.