July 7, 2026, 12:41 PM EDT. The U.S. dollar index rose 0.13% as stocks fell, sending traders toward safer assets. New York Fed President John Williams warned that inflation is still hot, giving the dollar another push. Oil prices climbed, stoking fresh inflation worries and helping keep Fed policy tight. The greenback pulled back some after the U.S. May trade gap widened to $77.6 billion, the biggest in over a year, weighing on Q2 GDP hopes. The euro lost 0.10% even as German factory output beat forecasts, with markets low on conviction for an ECB rate move. The yen posted small gains after better Japanese data and record government bond yields at 2.861%, but soft wage growth limited the move. Intervention risk is still high with the yen trading close to multi-decade lows versus the dollar.
