U.S. Dollar Slides As Plummeting Crude Oil Prices Ease Inflation Pressures

(RTTNews) - The U.S. Dollar value inched lower extending yesterday's losses as U.S. Federal Reserve interest-rate-hike concerns eased after Thursday's U.S. economic data release. In addition, today's plunge in crude oil prices diminished oil-linked inflationary concerns.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 101.35, down by 0.16 (or 0.16%) today.

Today in the U.S., the University of Michigan Consumer Sentiment index was revised higher to 49.5 in June, up from a preliminary reading of 48.9, slightly below forecasts of 50. The year-ahead inflation expectations stood at 4.6% in June.

Yesterday, the data from the U.S. Bureau of Economic Analysis showed that on a month-on-month basis, the core Personal Consumption Expenditures index rose by 0.30% from May and on a year-on-year basis, it rose by 3.40%.

On a quarterly basis, the core PCE index increased by 4.40% in Q1 2026.

On a month-on-month basis, the PCE index rose 0.40% in May and on a year-on-year basis, it increased 4.10% in May.

The U.S. economy expanded at an annualized 2.10% in Q1 2026.

While against the Euro, USD was trading at 1.139, down by 0.15%, against the GBP, it was trading at 1.320, down by 0.08%.

Against the USD, the Japanese Yen was trading at 161.745, up by 0.02%.

Data from Statistics Bureau of Japan revealed that core consumer prices in Tokyo's central wards rose 1.60% year-on-year in June, accelerating from 1.30% in the previous month, and in line with market expectations. The Consumer Purchase Index climbed to 1.70% in June from 1.40% of May.

Against the USD, the Swiss Franc was trading at 0.810, down by 0.07%; and the Canadian Dollar was trading at 1.418, up by 0.11%.

Against one unit of Australian Dollar, USD was trading at 0.689, up by 0.21%.

Yesterday, the U.K. Maritime Trade Operations center announced that a Singapore-flagged container belonging to Taiwan's Evergreen Marine (named Ever Lovely) traveling through a new U.N. backed route was struck by an unknown projectile on the starboard side.

The attack came 7.5 nautical miles southeast of Dahit, in Oman's Musandam exclave. Though no casualties or environmental damages were reported, the UKMTO advised vessels to pass through this area with caution.

The United Nation's International Maritime Organization paused its evacuation initiative after this incident.

Iran's Persian Gulf Strait Authority that is now managing requests to travel through the Strait of Hormuz has warned that vessels moving outside the routes specified by Iran will not be guaranteed a safe passage.

U.S. President Donald Trump criticized the attack as a foolish violation of ceasefire agreement.

The incident reignited concerns about the longevity of the U.S.-Iran Memorandum of Understanding recently signed offering a 60-day period of ceasefire to both nations.

However, the resumption of shipping traffic continued without a let-up, and this resulted in weakness in crude oil prices and consequently reduced inflationary pressures.

WTI crude oil for August month delivery was last seen trading at $69.04, down by $2.88 (or 4.00%).

According to CME Group's FedWatch Tool, investors are betting on a 29.90% chance of a quarter-basis-point interest rate-hike in the upcoming Federal Reserve's meeting on July 28-29 while the bets on rates being held at the current level stand at 70.10%.