Dollar Rises as Iran Denies US Talks

2026-03-24 02:10 By Jam Kaimo Samonte 1 min. read

The dollar index climbed toward 99.5 on Tuesday, recovering some losses from the previous session as Iran denied any talks to end the conflict, pushing back against President Donald Trump’s claims.

Tehran also said it launched new attacks on US targets, while Israel continued strikes against Iran, keeping tensions elevated.

On Monday, the dollar had come under heavy selling pressure after Trump postponed planned strikes on Iranian energy infrastructure for five days, citing productive discussions with Iran over the past two days.

The outcome of any talks and the potential reopening of the Strait of Hormuz remain highly uncertain, while Middle Eastern energy capacity may take time to return to prior levels.

That raises the risk of higher inflation in the coming months and the possibility of interest rate hikes from major central banks.

Investors now turn their focus to upcoming US manufacturing data for fresh cues on how businesses are faring under heightened geopolitical risks.



News Stream
Dollar Rises as Iran Denies US Talks
The dollar index climbed toward 99.5 on Tuesday, recovering some losses from the previous session as Iran denied any talks to end the conflict, pushing back against President Donald Trump’s claims. Tehran also said it launched new attacks on US targets, while Israel continued strikes against Iran, keeping tensions elevated. On Monday, the dollar had come under heavy selling pressure after Trump postponed planned strikes on Iranian energy infrastructure for five days, citing productive discussions with Iran over the past two days. The outcome of any talks and the potential reopening of the Strait of Hormuz remain highly uncertain, while Middle Eastern energy capacity may take time to return to prior levels. That raises the risk of higher inflation in the coming months and the possibility of interest rate hikes from major central banks. Investors now turn their focus to upcoming US manufacturing data for fresh cues on how businesses are faring under heightened geopolitical risks.
2026-03-24
DXY Eases as Trump Delays Iran Strikes
The dollar index slipped to around 99.2 on Monday after President Donald Trump said he had instructed the Department of Defense to postpone all planned strikes on Iranian energy infrastructure for five days, citing productive discussions with Iran over the past two days. While Tehran has not confirmed the talks, the comments suggest a possible opening toward de escalation. Oil prices dropped sharply following the announcement, with WTI falling more than 9% below $90 per barrel and Brent sliding over 13% to under $97. Despite the pullback, earlier gains in energy costs have continued to fuel inflation concerns, reducing expectations for near term Federal Reserve rate cuts and prompting some traders to price in a potential hike later this year. Major central banks including the Fed, ECB, BOE and BOJ have all held rates steady while signaling readiness to tighten policy further if inflation persists.
2026-03-23
Dollar Firms Up on Haven Demand
The dollar index climbed toward 100 on Monday, extending gains from the previous session as rising tensions in the Middle East boosted safe-haven demand for the currency. The US-Israel war with Iran entered its fourth week with no sign of easing, with President Donald Trump threatening strikes on Iranian power plants if the Strait of Hormuz is not reopened, while Tehran warned it would target key US and Israeli assets across the region if its energy facilities were hit. Elevated oil prices continued to fuel inflation fears and lowered the likelihood of a near-term Federal Reserve rate cut, with some traders now pricing in a potential rate hike toward year-end. Last week, the Fed kept its policy rate unchanged as expected, with Chair Jerome Powell noting it was too soon to assess the full economic impact of the Iran conflict. The ECB, BOE and BOJ also held rates steady but signaled readiness to tighten policy further if inflationary pressures persist.
2026-03-23