The dollar index (DXY00) today is up +0.31%, rebounding higher from Thursday's 3-1/4 year low. The dollar today rallied on Israel's overnight attack on Iran, which sparked some safe-haven demand for the dollar. The dollar also moved higher as the 10-year T-note yield rose due to the inflation implications of today's +7% rally in oil prices.
The dollar is also seeing support from today's stronger-than-expected US consumer sentiment report. The preliminary June University of Michigan US consumer sentiment index rose +8.3 points to 60.5, stronger than expectations for a rise to 53.6. In another favorable development, 1-year inflation expectations fell to +5.1% from +6.6% in May, which was a larger decline than expectations of a decline to +6.4%. The 5-10 year inflation expectations indicator fell slightly to +4.1% from +4.2% in May, in line with market expectations.
