Dollar Rises on Houthi Tanker Attack and Higher Oil Prices

The U.S. dollar is firmer with the DXY up ~0.37% as rising yields support the currency: the 10-year Treasury yield gained ~5 bps and reached a 1.5-year high. Support is linked to stronger U.S. rate differentials alongside a sharp oil move, with oil prices up more than ~5% today, which can reinforce inflation expectations.

Analysis

The U.S. dollar is firmer with the DXY up ~0.37% as rising yields support the currency: the 10-year Treasury yield gained ~5 bps and reached a 1.5-year high. Support is linked to stronger U.S. rate differentials alongside a sharp oil move, with oil prices up more than ~5% today, which can reinforce inflation expectations.