USD Gains Support as Oil Rebounds from 4-Year Low, Risk Sentiment Improves

The US dollar is finding support as futures rise for the first time in four trading sessions, coinciding with a rebound in oil prices from 4-year lows. WTI crude has bounced 2.3% from recent depths near $67.50, helping stabilize risk sentiment across markets. The recovery in oil prices is easing concerns about global growth weakness that had pressured risk assets. Dollar index futures have gained 0.2% in early trading, with the greenback benefiting from improved market sentiment and reduced safe-haven flows. The correlation between oil prices and broader market sentiment remains strong, with energy sector recovery lifting equity futures and supporting commodity-linked currencies. Traders are monitoring whether oil's bounce can sustain above the $70 psychological level, which could further support risk appetite. The improved tone suggests potential for continued dollar strength if economic data remains supportive.