Dollar Rises on Strong US Economic Data, Crude Oil Prices Plunge

The US dollar index (DXY) rose by +0.06% on Monday due to strong economic data from the United States. The new capital goods nondefense, ex-aircraft and parts orders increased more than expected, indicating a strengthening economy.

However, gains in the dollar were limited as easing tensions between the US and Iran reduced safe-haven demand for the currency. Additionally, a sharp decline in crude oil prices by -7% on Monday lowered inflation expectations, which could lead to easier monetary policy from central banks.

The yen (JPY) saw some recovery on Monday after reaching a 39-year low of 163.99 yen/USD last Thursday. Lower T-note yields and the ongoing risk of intervention by Japanese authorities also supported the yen.