The dollar index (DXY00) is down by -0.02% today. The dollar recovered from overnight losses and is little changed after crude oil prices surged more than +6% when President Trump said the US will "hit Iran hard" after a recent attack from Iran that targeted a US base in Jordan. The jump in crude prices raises inflation expectations and could prompt the Fed to tighten monetary policy, a supportive factor for the dollar. Movement in the dollar is limited ahead of the conclusion of the 2-day FOMC meeting later today when policymakers are expected to keep interest rates unchanged.
Crude oil prices jumped today after the Islamic Revolutionary Guard Corps (IRGC) said it targeted a US airbase and command center in Jordan with ballistic missiles. The IRGC also claimed to have hit and halted three tankers attempting to transit through the Strait of Hormuz. Meanwhile, the US and Saudi Arabia launched a joint attack on "Iran-aligned terrorists" in Iraq after the IRGC directed them to target US forces and Saudi energy infrastructure.
