The dollar index (DXY00) is down by -0.02% today. The dollar index is under slight pressure as an easing of tensions in the Middle East has curbed safe-haven demand for the currency after the US and Iran held off attacks on one another for a third straight day. Also, today's -6% plunge in WTI crude oil has lowered inflation expectations and could prompt the Fed to pursue easier monetary policy, a negative factor for the dollar. In addition, weakness in T-note yields today has weakened the dollar's interest rate differentials.
The dollar recovered from its worst level today after Jun capital goods new orders, nondefense, ex-aircraft and parts rose more than expected, a sign of economic strength. Some safe-haven demand also supports the dollar as President Trump has raised the possibility of intensified action against Iran and as Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday.
