Dollar Surges on Hawkish Comments as Oil Prices Fall

The US dollar index DXY has reached a 7-week high, climbing by +0.10% today. This increase in value can be attributed to hawkish comments from Boston Fed President Susan Collins, who suggested that inflation may remain above 2%. She stated an 'increased likelihood' of scenarios where inflation remains 'notably above 2%'.

The dollar's gain is limited by the fall in WTI crude oil prices, which dropped more than 1% to a 3-week low. This easing of inflation expectations may persuade the Fed to loosen monetary policy, making the dollar less attractive.

A weaker-than-expected September Richmond Fed manufacturing survey also contributed to bearish sentiment for the dollar. The survey fell -6 to a 7-month low of -2, below forecasts of 2.