Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRich AsplundWed, June 10, 2026 at 9:36 PM GMT+2 4 min readThe dollar index (DXY00) on Wednesday rose by +0.06%. The dollar recovered from early losses on Wednesday and posted modest gains after crude oil prices surged. WTI crude rallied by more than 2% on Wednesday, boosting inflation expectations that could prompt the Fed to tighten monetary policy, a supportive factor for the dollar. Also, Wednesday’s stock market slump boosted liquidity demand for the dollar. The dollar initially moved lower on Wednesday after US May consumer prices rose as expected, easing inflation fears and potentially keeping the Fed from tightening monetary policy.US May CPI rose +4.2% y/y, right on expectations and the fastest pace of increase in 3 years. May core CPI rose +2.9% y/y, right on expectations, and the fastest pace of increase in 7 months.More News from BarchartDollar Weakens as Crude Oil Prices SinkCrude Oil Weakness Weighs on the DollarDollar Weakens on as Expected US May CPIStop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now!The dollar also benefits from safe-haven demand amid the ongoing hostilities between the US and Iran. Overnight, the US and Iran exchanged strikes, and the US said it had completed an operation that saw fighter jets strike Iranian air defenses, ground control stations, and radar sites near the Strait of Hormuz in retaliation for Iran shooting down a US Apache helicopter. In response, Iran launched missiles at four US military targets and fired drones at the main US naval base in the Middle East, located in Bahrain, and struck Ali Al Salem air base in Kuwait. President Trump said that Iran has taken too long to make a deal and that they will now have to “pay the price,” fueling concerns that the US may escalate military attacks on Iran.The swaps markets are discounting the odds at +3% for a +25 bp rate cut hike at the next FOMC meeting on June 16-17.EUR/USD (^EURUSD) on Wednesday rose by +0.01%. The euro posted modest gains on Wednesday amid expectations that the ECB will raise interest rates by +25 bp on Thursday. However, gains in the euro were limited as Wednesday’s +2% rally in crude oil prices is negative for the Eurozone economy and the euro, as Europe imports most of its energy.The markets are discounting a +99% chance for a +25 bp rate hike by the ECB at Thursday’s policy meeting.USD/JPY (^USDJPY) on Wednesday rose by +0.10%. The yen added to Tuesday’s losses on Wednesday and fell to a fresh 5-week low against the dollar. Wednesday’s +2% rally in crude oil prices is bearish for the Japanese economy and the yen as Japan imports more than 90% of its energy needs. Also, higher T-note yields on Wednesday were negative for the yen.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info