Dollar On Track to End the Week Higher

2026-03-27 13:58 By Joana Taborda 1 min. read

The dollar index held steady near 100 on Friday and is on track to post a weekly gain of around 0.3%, as persistent concerns over the war with Iran, rising oil prices, and their implications for inflation and growth continue to support the currency.

Oil is trading close to its 2022 highs, with markets bracing for the conflict to extend into April as attacks persist across the Middle East.

This comes despite US President Trump’s announcement of a 10-day pause on attacks targeting Iran’s energy infrastructure, through April 6, aimed at allowing more time for negotiations.

However, some investors fear this window could also be used by the US to build up additional forces in the region.

Meanwhile, traders have scaled back expectations for Fed rate cuts this year, although the central bank still sees one 25bps cut in 2026.

The greenback strengthened mostly against the British pound and the Swiss franc but was little changed against the euro, the yen and the Australian dollar.



News Stream
Dollar On Track to End the Week Higher
The dollar index held steady near 100 on Friday and is on track to post a weekly gain of around 0.3%, as persistent concerns over the war with Iran, rising oil prices, and their implications for inflation and growth continue to support the currency. Oil is trading close to its 2022 highs, with markets bracing for the conflict to extend into April as attacks persist across the Middle East. This comes despite US President Trump’s announcement of a 10-day pause on attacks targeting Iran’s energy infrastructure, through April 6, aimed at allowing more time for negotiations. However, some investors fear this window could also be used by the US to build up additional forces in the region. Meanwhile, traders have scaled back expectations for Fed rate cuts this year, although the central bank still sees one 25bps cut in 2026. The greenback strengthened mostly against the British pound and the Swiss franc but was little changed against the euro, the yen and the Australian dollar.
2026-03-27
Dollar Holds Gains on US-Iran Uncertainties
The dollar index traded just below 100 on Friday after rising for three consecutive sessions, supported by heightened uncertainties over the Middle East conflict and its effects on oil prices, inflation, and economic growth. In the latest developments, the Pentagon is reportedly looking at sending up to 10,000 additional ground troops in the Middle East to give the White House more options at the negotiating table. Meanwhile, Trump extended a deadline to attack Iranian energy infrastructure for 10 days, adding that Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week as a “present” to the US. Disruptions linked to the conflict have pushed energy prices higher, fanning inflation fears and supporting hawkish expectations on Federal Reserve policy. Markets are now pricing in a nearly 50% chance that the Fed could hike rates by December, a sharp reversal from previous expectations of two rate cuts for this year.
2026-03-27
Dollar Gains for 3rd Day
The dollar index edged up to 99.9 on Thursday, a third consecutive session of gains, as investors continued to assess developments in the Middle East and their implications for oil prices, inflation, and economic growth. Also, mounting doubts over a near-term end to the war with Iran weighed on sentiment, with President Donald Trump saying he would not commit to a deal to end the conflict while Tehran shows little willingness to compromise. Disruptions linked to the conflict have pushed energy prices higher, reinforcing inflation concerns and strengthening expectations that the Fed will keep interest rates steady throughout the year. On the data front, initial jobless claims edged up slightly to 210K, while continuing claims fell to a near two-year low. The greenback was mostly higher against the euro and the Australian dollar.
2026-03-26