The dollar index (DXY00) is up by +0.12% today. Soaring T-note yields today have strengthened the dollar’s interest rate differentials and are pushing the dollar higher. Also, today’s +2% rally in WTI crude oil to a 6-week high is raising inflation expectations and could potentially persuade the Fed to raise interest rates, a supportive factor for the dollar. In addition, today’s stock slump has boosted liquidity demand for the dollar.
The dollar fell back from its best level today on weaker-than-expected US economic news, including Aug ISM manufacturing, July construction spending, and July JOLTS job openings.
