Dollar Holds Gains on Diplomatic Uncertainty

2026-03-26 01:45 By Jam Kaimo Samonte 1 min. read

The dollar index held around 99.6 on Thursday after rising in the previous session, as investors continued to monitor developments in the Middle East amid heightened uncertainty over efforts to end the Iran war.

The White House maintained that talks are ongoing, with the Trump administration reportedly sending a 15-point plan to Iran via Pakistan aimed at resolving the conflict.

Top Iranian authorities are reviewing the US proposal but indicated no intention of holding talks with Washington.

Tehran said it would reject a US ceasefire offer, instead countering with a five-point plan that would grant it control over the Strait of Hormuz.

Disruptions from the conflict have pushed energy prices higher, fueling inflation concerns and reinforcing expectations that the Federal Reserve will keep interest rates steady throughout the year.

Investors now turn to the latest weekly jobless claims data on Thursday for fresh signals on labor market conditions.



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Dollar Holds Gains on Diplomatic Uncertainty
The dollar index held around 99.6 on Thursday after rising in the previous session, as investors continued to monitor developments in the Middle East amid heightened uncertainty over efforts to end the Iran war. The White House maintained that talks are ongoing, with the Trump administration reportedly sending a 15-point plan to Iran via Pakistan aimed at resolving the conflict. Top Iranian authorities are reviewing the US proposal but indicated no intention of holding talks with Washington. Tehran said it would reject a US ceasefire offer, instead countering with a five-point plan that would grant it control over the Strait of Hormuz. Disruptions from the conflict have pushed energy prices higher, fueling inflation concerns and reinforcing expectations that the Federal Reserve will keep interest rates steady throughout the year. Investors now turn to the latest weekly jobless claims data on Thursday for fresh signals on labor market conditions.
2026-03-26
Dollar Below Recent Highs
The dollar index was little changed at around 99.4 on Wednesday, remaining below the ten-month highs reached earlier this month, as traders weighed the prospects of a potential de-escalation in the conflict with Iran. US President Trump said Washington was negotiating with Tehran and suggested that Iran may be willing to reach a peace agreement, although Iranian authorities have denied engaging in direct talks. He also noted that he had stepped back from his recent threat to order strikes on Iranian energy infrastructure “based on the fact that we’re negotiating”. Oil prices fell by around 6% in response, providing some temporary relief from concerns over a renewed spike in inflation. Meanwhile, traders have scaled back expectations for Federal Reserve rate cuts this year and now anticipate no reductions for the time being.
2026-03-25
Dollar Pressured by Mideast Optimism
The dollar index strengthened above 99 on Wednesday, but remained under pressure amid reports that the US was pursuing talks with Iran to end the conflict. President Donald Trump said Iran had offered a gesture of goodwill in negotiations tied to energy flows through the Strait of Hormuz. Israeli media also indicated that Washington was seeking a one-month ceasefire to facilitate talks, while the New York Times reported that the US had sent Iran a 15-point proposal to resolve the conflict. Still, investors remained skeptical as Tehran denied engaging in any negotiations with the US, while Gulf states signaled readiness to join the war against Iran. Oil prices eased on these developments, providing some relief to markets concerned that surging energy costs could fuel inflation and prompt interest rate hikes. Meanwhile, Federal Reserve Governor Michael Barr said the central bank may need to keep rates elevated for some time to address inflation.
2026-03-25