The dollar index fell 0.32% as crude oil prices dropped more than 3%, easing inflation expectations and fueling speculation the Federal Reserve may loosen monetary policy. Losses accelerated after the University of Michigan's June consumer sentiment index was revised up to 49.5, still below the 50.0 forecast, while one-year inflation expectations held at 4.6% and five-to-ten-year expectations edged down to 3.3%. Swaps markets price a 30% chance of a quarter-point rate cut at the July FOMC meeting. The euro gained 0.47% against the dollar, supported by the weaker greenback and lower oil prices, which benefit the energy-importing Eurozone, though ECB inflation expectations were mixed. The yen rose 0.12% after Tokyo CPI data exceeded forecasts, with the June headline rising 1.7% year-over-year, but the currency remains near a 39-year low amid concerns over the Bank of Japan's slow policy normalization. Gold and silver rallied sharply, with August gold up 1.36% and July silver up 1.52%, as the weaker dollar and sliding oil prices boosted precious metals.