Dollar Rises on Hawkish Rally in Oil Prices

TL;DR

Dollar steadies as markets await signals on Iran war, central banks AI Rally, Haven Flows Boost Bets on Further Dollar Gains The dollar index (DXY00) is up +0.42% on safe-haven demand after Iran said it halted ceasefire talks with the US, which could prompt a new large-scale US military attack on Iran. That report prompted a rally of more than +7% in crude oil prices, which in turn prompted a +7 bp rise in the 10-year T-note yield and supported the dollar’s interest rate differentials. The dollar is also seeing support after the May US manufacturing PMI rose +1.3 points to 54.0, stronger than expectations for a +0.3 point rise to 53.0.