The dollar index (DXY00) is up by +0.88% today at a 5-week high. The dollar is climbing today as today's surge in oil prices to an 8.25-month high has boosted inflation expectations and reduced the chance for additional Fed rate cuts, a supportive factor for the dollar. Also, today's stock selloff has spurred liquidity demand for the dollar. In addition, today's better-than-expected Fed ISM manufacturing report was supportive of the dollar. Finally, higher T-note yields today have strengthened the dollar's interest rate differentials.
The US Feb ISM manufacturing index fell -0.2 to 52.4, stronger than expectations of 51.5. The Feb ISM prices paid sub-index rose +11.5 to a 3.5-year high of 70.5, stronger than expectations of 60.0.
