The dollar index (DXY00) climbed to a 7-week high today and is up by +0.24%. Weakness in the yen is positive for the dollar, as it tumbled to a 2-week low today. Also, today’s +1% jump in WTI crude oil prices boosts inflation expectations and may prompt the Fed to keep tightening monetary policy, a bullish factor for the dollar. The dollar also has carryover support from Wednesday when the FOMC raised interest rates by 25 bp and signaled another rate hike by the end of the year. The dollar fell from its best level after US Aug manufacturing production and Aug leading indicators unexpectedly declined.
US Aug manufacturing production unexpectedly fell -0.3% m/m, weaker than expectations of +0.3% m/m and the largest decline in 10 months.
