Dollar Finds Support on Mideast Jitters

2026-04-07 01:51 By Jam Kaimo Samonte 1 min. read

The US dollar index rose back above 100 on Tuesday, recovering losses from the previous session as President Donald Trump’s deadline for Iran to reach a deal or face attacks on civilian infrastructure nears.

Trump threatened strikes on Iranian power plants and bridges unless his conditions, including reopening the Strait of Hormuz, are met by 8 p.m.

Eastern Time, though he noted that talks with Tehran are proceeding well.

The dollar had come under pressure on Monday after reports suggested the US, Iran, and regional mediators were negotiating a potential 45-day ceasefire and that more vessels were transiting Hormuz.

Investors now turn to US durable goods orders data due Tuesday, along with inflation figures and the latest FOMC minutes later this week for insights on economic health.

Markets have fully priced in that the Federal Reserve will keep the federal funds rate steady later this month, with borrowing costs expected to remain unchanged for the rest of the year.



News Stream
Dollar Finds Support on Mideast Jitters
The US dollar index rose back above 100 on Tuesday, recovering losses from the previous session as President Donald Trump’s deadline for Iran to reach a deal or face attacks on civilian infrastructure nears. Trump threatened strikes on Iranian power plants and bridges unless his conditions, including reopening the Strait of Hormuz, are met by 8 p.m. Eastern Time, though he noted that talks with Tehran are proceeding well. The dollar had come under pressure on Monday after reports suggested the US, Iran, and regional mediators were negotiating a potential 45-day ceasefire and that more vessels were transiting Hormuz. Investors now turn to US durable goods orders data due Tuesday, along with inflation figures and the latest FOMC minutes later this week for insights on economic health. Markets have fully priced in that the Federal Reserve will keep the federal funds rate steady later this month, with borrowing costs expected to remain unchanged for the rest of the year.
2026-04-07
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 the Fed will leave the federal funds rate steady later this month and expect borrowing costs to remain unchanged 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