The dollar index (DXY00) fell from a 1-month high today and is down by -0.04%. The dollar gave up an early advance today and moved slightly lower on an unexpected decline in July consumer confidence. Also, today’s -1% decline in WTI crude oil to a 1-week low has lowered inflation expectations and could prompt the Fed to pursue easier monetary policy, a negative factor for the dollar.
Losses in the dollar are limited amid some mild short covering ahead of the 2-day FOMC meeting that begins today. The dollar is also supported by some safe-haven demand amid heightened tensions in the Middle East.
