The dollar index (DXY00) fell from a new 1.5-month high today and is down by -0.20%. The dollar is under pressure today after WTI crude oil prices fell more than -2%, easing inflation expectations and a dovish factor for Fed policy. Lower T-note yields today are also weighing on the dollar. In addition, today’s sharp rally in stocks has curbed demand for dollar liquidity.
Dollar losses are limited after US weekly jobless claims unexpectedly fell to an 8-week low today, signaling a strong labor market. The dollar also has carryover support from Wednesday when the FOMC raised interest rates by 25 bp and signaled another rate hike by the end of the year.
