Dollar Rallies with Stocks Down, Crude Oil Up
The US dollar index DXY rose by +0.10% on Tuesday due to increased demand for dollar liquidity driven by weakness in stocks.
Meanwhile, WTI crude oil rallied to a 3-week high, boosting inflation expectations and potentially prompting the Fed to tighten monetary policy, a positive factor for the dollar.
The 10-year T-note yield also rose to a 1.5-year high of 4.75% on Tuesday, strengthening the dollar's interest rate differentials.