The dollar index (DXY00) climbed to a 7-week high on Tuesday and finished up +0.17%. The dollar found support today on hawkish Fed comments, after Boston Fed President Susan Collins and Richmond Fed President Tom Barkin warned that inflation pressures could remain elevated, suggesting they may favor additional Fed tightening.
Dollar gains were limited on Tuesday after WTI crude oil prices fell more than 1% to a 3-week low, easing inflation expectations and potentially persuading the Fed to loosen monetary policy, a bearish factor for the dollar. Also, Tuesday’s weaker-than-expected Sep Richmond Fed manufacturing survey was bearish for the dollar.
