The dollar index (DXY00) climbed to a 2-week high today and is up by +0.09%. The dollar is climbing today on signs of US economic growth after Aug retail sales rose more than expected. The dollar also has support on expectations that the Fed will raise interest rates by 25 bp at today’s FOMC meeting.
Higher stocks today have curbed demand for dollar liquidity. Also, the larger-than-expected decline in the Sep NAHB housing market index is negative for the dollar. In addition, today’s -2% decline in WTI crude oil lowers inflation expectations and is dovish for Fed policy and bearish for the dollar.