Dollar Jumps as Peace Talks Falter

2026-04-27 01:49 By Jam Kaimo Samonte 1 min. read

The dollar index climbed as high as 99.3 on Monday before easing to around 98.5, as efforts to resume peace negotiations between the US and Iran failed to push through, keeping markets cautious about geopolitical tensions.

President Trump cancelled plans to send senior envoys for a second round of talks with Iran, while Tehran reiterated it would not negotiate under threats or blockade conditions.

Oil prices rallied again as the Middle East conflict entered its ninth week and the Strait of Hormuz remained effectively shut, fueling inflation concerns and increasing expectations that central banks may keep interest rates higher for longer or even tighten further.

The Federal Reserve is widely expected to hold its policy rate steady on Wednesday, a meeting that could mark Jerome Powell’s final session as chair before Kevin Warsh is anticipated to take over in May.

Investors are also positioning ahead of key policy decisions from the ECB, Bank of England, and Bank of Japan later this week.



News Stream
Dollar Jumps as Peace Talks Falter
The dollar index climbed as high as 99.3 on Monday before easing to around 98.5, as efforts to resume peace negotiations between the US and Iran failed to push through, keeping markets cautious about geopolitical tensions. President Trump cancelled plans to send senior envoys for a second round of talks with Iran, while Tehran reiterated it would not negotiate under threats or blockade conditions. Oil prices rallied again as the Middle East conflict entered its ninth week and the Strait of Hormuz remained effectively shut, fueling inflation concerns and increasing expectations that central banks may keep interest rates higher for longer or even tighten further. The Federal Reserve is widely expected to hold its policy rate steady on Wednesday, a meeting that could mark Jerome Powell’s final session as chair before Kevin Warsh is anticipated to take over in May. Investors are also positioning ahead of key policy decisions from the ECB, Bank of England, and Bank of Japan later this week.
2026-04-27
Dollar Weakens Slightly, Still Set for Weekly Gain
The dollar index fell below 98.6 on Friday, paring an earlier rise, as traders continued to focus on developments in the Middle East. Al Jazeera reported that government sources indicated a “high likelihood of a breakthrough” in US–Iran talks in Islamabad, with a delegation led by Iran’s Foreign Minister expected to arrive in the Pakistani capital tonight. In addition, US President Trump announced a three-week extension to the ceasefire in Lebanon, which was due to expire on Sunday. Still, the greenback is up about 0.7% on the week, its first weekly gain in three weeks, as the stalemate in US–Iran talks and the near closure of the Strait of Hormuz continue to support higher oil prices and add to inflationary pressures, prompting traders to reassess the interest rate outlook. The Fed is widely expected to keep the federal funds rate unchanged next week, with no further rate changes anticipated for the remainder of the year.
2026-04-24
Dollar Set for Weekly Gain on Middle East Tensions
The dollar index hovered around 98.8 on Friday and was on track for its first weekly gain in three weeks, as stalled US-Iran peace efforts supported demand for the safe-haven currency. President Donald Trump said in a social media post on Thursday that he had ordered the US Navy to “shoot and kill” vessels laying mines in the Strait of Hormuz. The strategic waterway remains effectively closed, with both sides maintaining their blockades, driving energy prices higher and intensifying inflation risks. Meanwhile, the Federal Reserve is widely expected to keep the fed funds rate unchanged next week and for much of the year, as policymakers assess the impact of the Iran conflict on inflation and economic growth. Investors have also taken note of comments from Fed nominee Kevin Warsh earlier this week, in which he pledged to uphold independence in monetary policy decisions.
2026-04-24