The dollar index (DXY00) is up +0.11% today and is just below Monday's 1.5-week high. Today's +1% rise in WTI crude oil prices raises inflation expectations and could persuade the Fed to tighten monetary policy, which supports the dollar. Also, today's increase in the 10-year T-note yield to a 19-year high of 5.04% strengthens the dollar's interest rate differentials. In addition, expectations that the Fed will raise interest rates by 25 bp at the Tue/Wed FOMC meeting support the dollar. The dollar fell from its best level today after the Sep Empire manufacturing survey came in weaker than expected.
The US Sep Empire manufacturing survey of general business conditions fell -13.0 points to 7.6, weaker than expectations of 15.0.
Dollar Edges Higher as Stocks Fall and Crude Oil Rallies
Dollar Rises on Surging Crude Prices and T-Note Yields
Dollar Climbs as Stocks Sink and Crude Oil Surges

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