The dollar index (DXY00) rose by +0.06% on Tuesday. The dollar found support on Tuesday after WTI crude oil prices rose more than +1% to a 1-week high, which raises inflation expectations and may persuade the Fed to tighten monetary policy, a supportive factor for the dollar. Also, weakness in stocks on Tuesday boosted some liquidity demand for the dollar. In addition, hawkish comments from Chicago Fed President Goolsbee gave the dollar a lift when he said inflation is the biggest problem the economy faces.
Gains in the dollar were limited on Tuesday after Pakistan signaled the US and Iran were close to an arrangement that could reopen the Strait of Hormuz.