Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTRich AsplundFri, July 17, 2026 at 9:36 PM GMT+2 5 min readThe dollar index (DXY00) finished little changed on Friday. The dollar found some support from Friday's +4% jump in WTI crude oil prices, which raises inflation expectations and could prompt the Fed to pursue tighter monetary policy, a supportive factor for the dollar. Also, Friday's stock selloff boosted liquidity demand for the dollar. Friday's US economic news was mixed for the dollar, with housing starts and consumer sentiment stronger than expected, but building permits and manufacturing production below expectations. The dollar gave up its gains on Friday as T-note yields declined, which weakened the dollar's interest rate differentials. US Jun housing starts rose +19.0% m/m to 1.427 million, stronger than expectations of 1.310 million. However, Jun building permits, a proxy for future construction, fell -3.0% to 1.367 million, below expectations of 1.403 million.More News from BarchartDollar Finds Support from Weak Stocks and Surging Crude PricesStop 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!US Jun manufacturing production was unchanged m/m, weaker than expectations of +0.1% m/m.The US Jun import price index ex-petroleum rose +0.5% m/m, stronger than expectations of +0.4% m/m.The University of Michigan US Jul consumer sentiment index rose by +4.9 to a 5-month high of 54.4, stronger than expectations of 51.0.The University of Michigan US Jul 1-year inflation expectations eased to 4.2% from 4.6% in Jun, weaker than expectations of 4.4%. The Jul 5-10-year inflation expectations were unchanged at 3.3% from Jun, right on expectations.Hawkish comments today from Cleveland Fed President Beth Hammack were supportive of the dollar, as she said persistently high inflation is her bigger concern right now, while consumer spending holds up and unemployment remains low.Heightened tensions between the US and Iran are pushing crude oil prices higher and could prompt the Fed to tighten monetary policy, which would be supportive of the dollar. The US launched fresh strikes against Iran for the sixth consecutive day on Friday, hitting coastal surveillance and air defense sites, military logistics infrastructure, and maritime assets. Iran responded by attacking US bases in Kuwait, Jordan, and Bahrain, with Kuwait saying a desalination and electricity plant were hit, with many power-generation units sustaining damage. The Kuwaiti armed forces said it intercepted 32 Iranian drones targeting "vital" institutions. President Trump pledges to intensify the bombardment until Iran stops attacking ships in the Strait of Hormuz and agrees to open the waterway. Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info