The dollar index (DXY00) today is up by +0.45%. The dollar is climbing today on renewed concerns that the US-Iran ceasefire may break down after President Trump said the current ceasefire was on "life support." Today's +3% surge in crude oil prices also boosts inflation expectations and may prompt the Fed to tighten monetary policy, a supportive factor for the dollar. The dollar added to its gains on today's stronger-than-expected US Apr CPI report, a hawkish factor for Fed policy.
US Apr CPI rose +3.8% y/y, stronger than expectations of +3.7% y/y and the fastest pace of increase in almost three years. Apr core CPI rose +2.8% y/y, stronger than expectations of +2.7% y/y and the largest increase in six months.
