Dollar Extends Gains Amid Mideast Tensions

2026-04-06 02:04 By Jam Kaimo Samonte 1 min. read

The dollar index rose above 100.2 on Monday, extending gains as investors reacted to the latest escalations in the Iran conflict after President Donald Trump set a new deadline and intensified threats against Iran’s power plants and other civilian infrastructure if the Strait of Hormuz is not reopened.

Tehran rejected the demand and continued strikes on energy assets across the region, keeping the critical waterway effectively closed.

The dollar has gained strongly amid the conflict, serving as a safe-haven store of value, while surging energy prices have heightened inflation concerns and fueled expectations that the Federal Reserve may delay rate cuts or even raise borrowing costs later this year.

Meanwhile, data released during Friday’s holiday showed the US economy added 178K jobs in March, nearly three times the 60K forecast.

Investors are now turning to the latest FOMC minutes for further signals on the central bank’s policy path.



News Stream
Dollar Index Slips Below 100 as Early Gains Fade
The dollar index pared its early gains and fell below 100 on Monday, as traders reacted positively to reports that Iran, the US, and a group of regional mediators are discussing a potential 45-day ceasefire that could pave the way toward ending the war. Additional reports indicating that more ships are passing through the Strait of Hormuz helped ease pressure on oil prices, offering some temporary relief. This comes amid President Trump’s threat to target Iran’s power plants starting Tuesday, while Iran continues striking energy infrastructure in neighboring Gulf countries. Investors are now awaiting a series of key economic releases that will provide further insight into the health of the economy, including the CPI report later this week and the FOMC minutes. Markets have fully priced in a pause in the federal funds rate later this month and expect borrowing costs to remain steady throughout the year.
2026-04-06
Dollar Extends Gains Amid Mideast Tensions
The dollar index rose above 100.2 on Monday, extending gains as investors reacted to the latest escalations in the Iran conflict after President Donald Trump set a new deadline and intensified threats against Iran’s power plants and other civilian infrastructure if the Strait of Hormuz is not reopened. Tehran rejected the demand and continued strikes on energy assets across the region, keeping the critical waterway effectively closed. The dollar has gained strongly amid the conflict, serving as a safe-haven store of value, while surging energy prices have heightened inflation concerns and fueled expectations that the Federal Reserve may delay rate cuts or even raise borrowing costs later this year. Meanwhile, data released during Friday’s holiday showed the US economy added 178K jobs in March, nearly three times the 60K forecast. Investors are now turning to the latest FOMC minutes for further signals on the central bank’s policy path.
2026-04-06
DXY Rises Above 100
The dollar index edged above 100 on Friday after stronger than expected US jobs data reinforced expectations that the Federal Reserve will keep interest rates higher for longer. Nonfarm payrolls increased by 178,000 in March, the strongest gain since late 2024, while the unemployment rate unexpectedly fell to 4.3%, partly reflecting a decline in labor force participation. The data pointed to a stabilizing labor market even as the Iran conflict began. Meanwhile, geopolitical tensions remained in focus as President Donald Trump escalated rhetoric against Iran, threatening strikes on key infrastructure, while reports indicated further attacks across the Gulf region. Rising energy prices are adding to inflation concerns, keeping markets cautious. Trading activity is likely to remain subdued due to the Good Friday holiday, with US equity markets closed and bond trading on a shortened schedule.
2026-04-03