The dollar index (DXY00) rallied to a 9.5-month high on Friday and finished up +0.65%. The dollar rallied on Friday as the war in Iran shows no signs of easing, threatening to keep crude oil prices elevated and prompting the Fed to hold off on cutting interest rates. Higher crude prices also threaten the European and Japanese economies that rely on energy imports, weakening their currencies against the dollar.
Friday’s US economic news was mixed for the dollar after Jan personal spending, and the University of Michigan US Mar consumer sentiment index was stronger than expected, but Q4 GDP was revised lower, and Jan capital goods new orders, nondefense ex-aircraft and parts, were weaker than expected.
