US domestic oil production provides energy boost for the dollar

The US employment report for March, which revealed only a modest increase in non-farm payrolls of 88,000, has helped stop the dollar in its tracks. But what impressive tracks they were, with the US Dollar Index moving from a year-to-date low of 78.92 on February 1 to gain 5.2% by the end of March. We are not surprised this episode of dollar strength has come to an end, given the likelihood of slower economic growth ahead, as the US consumer takes an income hit from the payroll tax, the sequester