The dollar index (DXY00) on Monday traded higher during the morning but then fell back in the afternoon after President Trump told CBS News in a phone interview that "I think the war is very complete, pretty much" and that the military operation is "very far" ahead of its 4-5 week timeframe.
The dollar initially saw support from Monday’s early spike in oil prices above $100 per barrel, which was hawkish for Fed policy. Also, higher oil prices are beneficial for the dollar because the US is the world's largest oil producer. However, oil prices fell back later in the day after G-7 finance ministers pledged to release strategic oil reserves if necessary and after President Trump seemed to indicate that the Iran war might soon end.
