The dollar index (DXY00) today is up by +0.19%. The dollar is climbing today as doubts about whether a ceasefire in Iran will materialize weigh on stocks and boost safe-haven demand for the dollar. Also, today's decline in US weekly continuing unemployment claims to a 1.75-year low is a sign of a strong labor market that is hawkish on Fed policy and dollar-supportive. In addition, today's +3% surge in crude oil prices pushed inflation expectations higher and may prompt the Fed to keep monetary policy restrictive, a bullish factor for the dollar.
The dollar found support today after Axios reported the Pentagon is developing military options for a "final blow" in Iran that could include the use of ground forces and a massive bombing campaign if there is no progress in diplomatic talks and the Strait of Hormuz remains closed when President Trump's deadline ends this weekend.
