Dollar Slightly Lower as the Yen Recovers

The dollar index (DXY00) is down by -0.10% today. The dollar is under modest pressure today amid a recovery in the yen, which rose from a 39-year low on the prospect of faster interest rate hikes from the BOJ. Losses in the dollar are limited due to today’s +3% rally in WTI crude oil to a 6-week high, which raises inflation expectations that could prompt the Fed to tighten monetary policy, a supportive factor for the dollar. Also, higher T-note yields today have strengthened the dollar’s interest rate differentials and are supportive of the dollar. The US and Iran played…