Dollar Back to 10-Month Highs

2026-03-30 14:13 By Joana Taborda 1 min. read

The dollar index approached 100.5 on Monday, rising for a fifth consecutive session and returning to levels last seen in May 2025, as the conflict with Iran showed no signs of de-escalation entering its fifth week.

Investors remained focused on the implications for growth and the monetary policy outlook.

Oil prices continued to climb to fresh highs not seen since 2022, strengthening expectations that higher energy costs could weigh on the economy and limit the Fed’s scope to raise interest rates.

As a result, the probability of a Fed rate hike in 2026 has fallen to around 20%, from roughly 35% at the end of last week.

Meanwhile, Fed Chair Powell said that President Trump’s tariffs resulted in a one-time price bump and that the central bank has little control over supply shocks such as the war-driven surge in oil prices.

Attention is also turning to a busy economic calendar.

The greenback was mostly higher against the pound, yen, and euro.



News Stream
Dollar Index Hits 44-week High
DXY increased to 100.54, the highest since May 2025. Over the past 4 weeks, Dollar Index gained 2.18%, and in the last 12 months, it decreased 3.54%.
2026-03-30
Dollar Back to 10-Month Highs
The dollar index approached 100.5 on Monday, rising for a fifth consecutive session and returning to levels last seen in May 2025, as the conflict with Iran showed no signs of de-escalation entering its fifth week. Investors remained focused on the implications for growth and the monetary policy outlook. Oil prices continued to climb to fresh highs not seen since 2022, strengthening expectations that higher energy costs could weigh on the economy and limit the Fed’s scope to raise interest rates. As a result, the probability of a Fed rate hike in 2026 has fallen to around 20%, from roughly 35% at the end of last week. Meanwhile, Fed Chair Powell said that President Trump’s tariffs resulted in a one-time price bump and that the central bank has little control over supply shocks such as the war-driven surge in oil prices. Attention is also turning to a busy economic calendar. The greenback was mostly higher against the pound, yen, and euro.
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The dollar index held above 100 on Monday after rising for four straight sessions, supported by safe-haven demand as the Middle East conflict entered its fifth week with no end in sight. Tensions escalated after President Donald Trump said he could “take the oil in Iran” and seize its export hub on Kharg Island, echoing the US military operation in Venezuela earlier this year. The US is also reportedly preparing for weeks of ground operations in Iran after additional troops arrived in the region. Meanwhile, Iran-backed Houthi militants in Yemen joined the conflict after targeting Israel over the weekend. Surging oil prices from the Iran war bolstered hawkish bets on Federal Reserve policy, with markets speculating on a possible rate increase this year. Investors now look ahead to key US jobs data this week, including the JOLTS and ADP private payrolls reports. The March jobs report will also be released on Friday, even as capital markets will be closed for the Good Friday holiday.
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