Dollar Holds Firm on US-Iran Jitters

2026-04-23 01:59 By Jam Kaimo Samonte 1 min. read

The dollar index held around 98.5 on Thursday, hovering at over one-week highs amid a lack of progress in peace efforts between the US and Iran, supporting safe-haven demand for the greenback.

The Strait of Hormuz also remains effectively closed, as Tehran maintains control of the strategic waterway and has seized two vessels, while the US blockade of Iranian ports continues, contributing to elevated energy prices and heightened inflation risks.

Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a new peace proposal from Iran.

Persistent inflation concerns have reinforced expectations that the Federal Reserve will keep interest rates unchanged this year, while Fed nominee Kevin Warsh pledged to preserve the central bank’s independence from the White House.

Investors now turn their attention to weekly jobless claims and upcoming PMI data for further signals on the US economic outlook.



News Stream
Dollar Holds Firm on US-Iran Jitters
The dollar index held around 98.5 on Thursday, hovering at over one-week highs amid a lack of progress in peace efforts between the US and Iran, supporting safe-haven demand for the greenback. The Strait of Hormuz also remains effectively closed, as Tehran maintains control of the strategic waterway and has seized two vessels, while the US blockade of Iranian ports continues, contributing to elevated energy prices and heightened inflation risks. Meanwhile, President Donald Trump said the current truce would remain in place indefinitely as Washington awaits a new peace proposal from Iran. Persistent inflation concerns have reinforced expectations that the Federal Reserve will keep interest rates unchanged this year, while Fed nominee Kevin Warsh pledged to preserve the central bank’s independence from the White House. Investors now turn their attention to weekly jobless claims and upcoming PMI data for further signals on the US economic outlook.
2026-04-23
Dollar Trades Sideways Near Pre-War Levels
The dollar index was at 98.3 on Wednesday, trading largely sideways near pre-war levels, as uncertainty in the Middle East persists despite some near-term relief from a ceasefire extension. US President Trump announced he would extend the ceasefire with Iran indefinitely, just ahead of its expiration, to allow time for peace negotiations. He also indicated that no new attacks were planned, although the blockade of the Strait of Hormuz would remain in place. However, uncertainty persists over the timing of any formal negotiations and news showed Iran fired ships in the Strait of Hormuz. Meanwhile, Federal Reserve nominee Kevin Warsh pledged to maintain independence from the White House while advancing broad reforms, a stance viewed as more hawkish than markets had expected. The Fed will decide on monetary policy next week and no changes in the fed funds rate are expected.
2026-04-22
Dollar Firms Up as Peace Talks Collapse
The dollar index held above 98.3 on Wednesday after gaining in the previous session, as plans for a second round of US-Iran peace talks fell apart, boosting safe-haven demand for the currency. Reports indicated Vice President JD Vance canceled a scheduled trip to Islamabad for negotiations after Tehran informed the US via Pakistan that it would not attend the meeting. Iran also said it would not reopen the Strait of Hormuz while the US Navy continues intercepting vessels. Meanwhile, President Donald Trump extended the current ceasefire, stating he would postpone further strikes until Iran submits a new proposal and talks are completed. On the policy side, Federal Reserve nominee Kevin Warsh pledged to maintain independence from the White House while advancing broad reforms, a stance viewed as more hawkish than markets had expected.
2026-04-22