Dollar Falls Amid Crude Oil Decline and Stocks Gain

The US dollar index DXY fell by -0.32% on Friday due to declining crude oil prices and strengthening stocks.

WTI crude oil prices dropped more than -2%, easing inflation expectations and weighing on Fed policy, which put pressure on the dollar.

Better-than-expected US economic news also limited dollar losses, including a 1.6% month-over-month increase in August capital goods new orders (nondefense, ex-aircraft and parts) and an upward revision of the University of Michigan's September consumer sentiment index to 48.1.

New York Fed President John Williams' hawkish comments supported the dollar when he said the Fed needs to return inflation to target.