Dollar Little Changed on Monday

2026-05-11 13:36 By Joana Taborda 1 min. read

The dollar index was little changed at 97.9 on Monday, as traders digested another setback in Middle East peace talks while awaiting further developments.

US President Trump rejected Iran’s counterproposal aimed at ending the 10-week conflict, calling it “totally unacceptable,” while Tehran vowed to “never bow.” As a result, oil prices moved higher, fueling concerns over the economic impact of a prolonged oil shock.

Meanwhile, US inflation data due tomorrow will be closely watched for further clues on the Fed’s next policy steps.

The Fed is widely expected to keep the federal funds rate unchanged this year, while investors currently see a 31% chance of a rate hike in Marc.

Investors were also looking ahead to a summit between US President Trump and Chinese President Xi Jinping expected later this week.

According to US officials, the two leaders are set to discuss Iran, Taiwan, artificial intelligence, nuclear weapons, and critical minerals.



News Stream
Dollar Little Changed on Monday
The dollar index was little changed at 97.9 on Monday, as traders digested another setback in Middle East peace talks while awaiting further developments. US President Trump rejected Iran’s counterproposal aimed at ending the 10-week conflict, calling it “totally unacceptable,” while Tehran vowed to “never bow.” As a result, oil prices moved higher, fueling concerns over the economic impact of a prolonged oil shock. Meanwhile, US inflation data due tomorrow will be closely watched for further clues on the Fed’s next policy steps. The Fed is widely expected to keep the federal funds rate unchanged this year, while investors currently see a 31% chance of a rate hike in Marc. Investors were also looking ahead to a summit between US President Trump and Chinese President Xi Jinping expected later this week. According to US officials, the two leaders are set to discuss Iran, Taiwan, artificial intelligence, nuclear weapons, and critical minerals.
2026-05-11
Dollar Strengthens on US-Iran Uncertainty
The US dollar index climbed to around 98 on Monday, recovering part of last week’s losses as the US and Iran struggled to find a diplomatic solution to end the 10-week conflict, supporting demand for the safe-haven currency. President Donald Trump dismissed Iran’s response to his peace proposal as “TOTALLY UNACCEPTABLE,” as Tehran reportedly offered transferring part of its highly enriched uranium stockpile to a third country while refusing to dismantle its nuclear infrastructure. On the economic side, data released Friday showed US nonfarm payrolls rose by 115,000 in April, significantly above expectations for a 62,000 increase, reinforcing market views that the Federal Reserve is likely to keep interest rates unchanged this year. Investors are now focused on upcoming US inflation data for April, which will offer further insight into how rising oil prices are filtering through to broader price pressures in the economy.
2026-05-11
DXY Falls to 10-Week Low
The dollar index fell below 98 on Friday, reaching its lowest level in ten weeks, despite stronger-than-expected US labor data that reinforced views the economy remains resilient amid the energy shock caused by the Iran conflict. US nonfarm payrolls increased by 115,000 in April, well above expectations for a 62,000 rise, marking a second consecutive monthly gain for the first time in nearly a year. The unemployment rate held steady at 4.3%. Markets are now weighing solid economic data against expectations that the Federal Reserve will remain cautious as higher energy prices continue to fuel inflation risks. President Donald Trump said the month-long ceasefire with Iran was still holding despite renewed clashes involving US and Iranian forces. Investors remain focused on the Strait of Hormuz, which has been largely closed since the war began, while Tehran has yet to respond to Washington’s proposal to reopen the key trade route.
2026-05-08