Dollar Weakens as Yuan Surges, Oil Prices Boost Inflation Expectations

The US dollar weakened today due to strength in the Chinese yuan, which reached a 3.5-year high.

This shift is modestly lower than last Friday's 2-week high for the dollar index (DXY00), which is down by -0.16% today.

However, losses in the dollar are limited as WTI crude oil climbed more than +2% to a 1-week high, raising inflation expectations and potentially prompting the Fed to raise interest rates, a supportive factor for the dollar.