The dollar index (DXY00) rallied to a 6-week high today and is up by +0.31%. Doubts over a US-Iran peace deal that would reopen the Strait of Hormuz are boosting safe-haven demand for the dollar today after Reuters reported that Iran's Supreme Leader said enriched uranium must stay in Iran. Also, today's +2% jump in WTI crude oil raises inflation expectations that could prompt the Fed to tighten monetary policy, a bullish factor for the dollar. In addition, today's stock weakness has boosted some liquidity demand for the dollar. The dollar added to its gains today after the US May manufacturing PMI expanded at its strongest pace in four years.
Today's US economic news is mixed for the dollar after manufacturing and housing activity were better than expected, but the May Philadelphia Fed business outlook survey fell more than expected to a 5-month low.
