The dollar index (DXY00) today is up by +0.12% and just below last Friday's 13-month high. The dollar erased early losses today and moved higher after the euro declined when ECB President Lagarde pushed back against any additional tightening of monetary policy by the ECB due to the US-Iran war. The dollar also has carryover support from last Wednesday, when the FOMC projected higher interest rates later this year. In addition, higher T-note yields today have strengthened the dollar's interest rate differentials and are supportive of the dollar.
The dollar initially moved lower today on reduced safe-haven demand after Iran said there had been "major progress" in overnight discussions with the US over a peace deal. Also, strength in stock today has curbed liquidity demand for the dollar.
