Dollar Remains on Strong Footing

2026-03-13 13:07 By Joana Taborda 1 min. read

The dollar index remained above the 100 mark on Friday, its highest level since late November 2025, and was on track for a second consecutive weekly gain as traders continued to favor the greenback as a safe haven amid the escalating conflict with Iran and the lack of prospects for an imminent resolution.

Investors also see the US as better positioned than other economies due to its greater energy independence.

At the same time, markets assessed a fresh batch of key economic data, including the PCE report, which showed the annual PCE inflation rate slowing to 2.8%.

Meanwhile, GDP growth was revised sharply lower to 0.7% in Q4, half the initial estimate of 1.4%.

As a result, traders reinforced bets on one Federal Reserve rate cut this year, possibly in September.

The central bank will decide on monetary policy next week and, although no changes to the federal funds rate are expected, markets will closely watch for clues about policymakers’ outlook for the remainder of the year.



News Stream
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