Dollar Set for Sharp Weekly Decline

2026-04-10 01:04 By Jam Kaimo Samonte 1 min. read

The dollar index held steady near 99 on Friday but was still on track to fall more than 1% for the week, as a two-week US-Iran ceasefire drove a sharp drop in oil prices and eased concerns over resurgent inflation and possible interest rate hikes.

Investors are now focused on diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in discussions with Iranian officials.

However, sentiment remained cautious amid continued Israeli strikes on Lebanon and ongoing disruptions in the Strait of Hormuz that could complicate negotiations.

On the macroeconomic front, markets awaited the March CPI report due later today for clues on how the Middle East conflict has affected inflation.

Meanwhile, minutes from the Federal Open Market Committee’s March meeting indicated policymakers were concerned the conflict could sustain inflationary pressures and potentially require further rate hikes, though they still anticipated one rate cut this year.



News Stream
Dollar Set for Sharp Weekly Decline
The dollar index held steady near 99 on Friday but was still on track to fall more than 1% for the week, as a two-week US-Iran ceasefire drove a sharp drop in oil prices and eased concerns over resurgent inflation and possible interest rate hikes. Investors are now focused on diplomatic talks in Islamabad this weekend, where Vice President JD Vance will lead a US delegation in discussions with Iranian officials. However, sentiment remained cautious amid continued Israeli strikes on Lebanon and ongoing disruptions in the Strait of Hormuz that could complicate negotiations. On the macroeconomic front, markets awaited the March CPI report due later today for clues on how the Middle East conflict has affected inflation. Meanwhile, minutes from the Federal Open Market Committee’s March meeting indicated policymakers were concerned the conflict could sustain inflationary pressures and potentially require further rate hikes, though they still anticipated one rate cut this year.
2026-04-10
Dollar Edges Down on Thursday
The dollar index pared early gains to trade slightly lower, slipping below 99 on Thursday to its weakest level in more than two weeks. Investors continued to monitor developments in the Middle East, where a recently announced ceasefire appeared increasingly fragile ahead of peace talks scheduled for Friday. The agreement showed signs of strain as Israel maintained its conflict with Hezbollah in Lebanon, while Tehran accused the US of violating the deal. The Strait of Hormuz also remained closed. On the data front, February PCE inflation rose in line with expectations, while Q4 GDP growth was revised lower and initial jobless claims edged up. Attention turns to the March CPI report due tomorrow for insights into how the Middle East conflict has impacted prices so far. Minutes from the FOMC’s March meeting showed policymakers were concerned that the war could lead to sustained inflation requiring further rate hikes, although they still expected one rate cut this year.
2026-04-09
Dollar Rises on Fragile US-Iran Ceasefire
The dollar index climbed above 99 on Thursday, trimming losses from the previous session as a fragile ceasefire between the US and Iran kept investor sentiment cautious. Iranian media reported that oil tanker transit through the Strait of Hormuz remained halted following fresh Israeli strikes on Lebanon, while a senior Iranian official said three provisions of the ceasefire proposal had already been breached. On Wednesday, the dollar had dropped sharply after the US and Iran agreed to a two-week ceasefire, causing a sudden drop in oil prices and easing inflation concerns. Meanwhile, minutes from the Federal Reserve’s latest policy meeting indicated that a growing number of members viewed a rate hike as possibly necessary to control inflation, though many still hoped the next move could be a cut. Investors now turn to February personal spending and the PCE deflator on Thursday, followed by the CPI report on Friday, for further guidance.
2026-04-09