The dollar index (DXY00) today climbed to a 1.5-week high and is up by +0.04%. The dollar remains supported amid persistent tensions in the Middle East, which is boosting safe-haven demand for the dollar. Also, rising crude oil prices are pushing up inflation expectations, a hawkish factor for Fed policy and supportive of the dollar. In addition, signs of strength in US manufacturing activity are bullish for the dollar, following the Apr S&P manufacturing PMI, which expanded at its strongest pace in nearly 4 years.
The dollar fell back from its best level after US weekly jobless claims rose more than expected, and the Mar Chicago Fed National Activity Index fell more than expected to a 4-month low.
