The dollar index (DXY00) is up +0.05%, consolidating mildly above last Friday’s 3-week low. The dollar is seeing some short covering after last week’s decline.
However, today’s -0.8 bp decline in the 10-year T-note yield is undercutting the dollar by hurting interest-rate differentials. Also, today’s -0.5% decline in WTI crude oil prices is dovish for Fed policy and negative for the dollar.