The dollar index (DXY00) today is down by -0.13%. Today's stock rally has curbed liquidity demand for the dollar. However, losses in the dollar are limited as today's +1% gain in WTI crude oil prices has strengthened inflation expectations and could prompt the Fed to keep monetary policy tight, a supportive factor for the dollar.
The swaps markets are discounting the odds at 32% for a +25 bp rate hike at the next FOMC meeting on July 28-29.
