The dollar index (DXY00) slid to a 1-week low today and is down -0.30%. The dollar came under pressure today after stocks rallied sharply following the US and Iran's announcement of a deal to end the war, which curbed liquidity demand for the dollar. Also, today's fall in the 10-year T-note yield to a 1-month low weakened the dollar's interest rate differentials. In addition, today's -5% plunge in WTI crude oil to a 3-month low, lowered inflation expectations, and could prompt the Fed to pursue easier monetary policy, a bearish factor for the dollar. The dollar added to its losses today on weaker-than-expected US economic reports: the Jun Empire manufacturing survey of general business conditions, May manufacturing production, and the Jun NAHB housing market index.
The dollar retreated today after the US and Iran agreed to end their war and reopen the Strait of Hormuz. President Trump said the Strait of Hormuz will reopen after Friday's signing of the peace deal, which will trigger the start of 60 days of talks on Iran's nuclear program.
