Dollar Falls as Crude Prices Slide and Stocks Rebound

The dollar index (DXY00) fell 0.21% from a 1.25-month high after crude oil prices retreated on reports the US proposed a temporary waiver of sanctions on Iran’s oil. Lower crude prices are a mild headwind for the dollar via softer inflation expectations, but the move is limited and largely FX-driven.

Analysis

The dollar index (DXY00) fell 0.21% from a 1.25-month high after crude oil prices retreated on reports the US proposed a temporary waiver of sanctions on Iran’s oil. Lower crude prices are a mild headwind for the dollar via softer inflation expectations, but the move is limited and largely FX-driven.