Dollar Rises on Ceasefire Uncertainty

2026-05-12 01:56 By Jam Kaimo Samonte 1 min. read

The dollar index moved back above 98 on Tuesday as President Trump cast doubt on the sustainability of US-Iran ceasefire after he rejected Tehran’s latest peace offer, boosting safe-haven demand for the greenback.

Reports also suggested that Trump is expected to meet with his national security team to consider a potential resumption of military operations, while revisiting plans to escort commercial vessels through the Strait of Hormuz.

The ongoing conflict has kept oil prices elevated, reinforcing inflation risks and strengthening expectations that interest rates may need to remain higher for longer to contain price pressures.

Meanwhile, investors were awaiting April’s consumer inflation report for clearer signals on how the Iran war is affecting the economy and shaping the Federal Reserve’s policy outlook.

Trump is also set to meet with Chinese President Xi Jinping later this week, with trade relations and artificial intelligence expected to dominate the agenda.



News Stream
Dollar Rises on Ceasefire Uncertainty
The dollar index moved back above 98 on Tuesday as President Trump cast doubt on the sustainability of US-Iran ceasefire after he rejected Tehran’s latest peace offer, boosting safe-haven demand for the greenback. Reports also suggested that Trump is expected to meet with his national security team to consider a potential resumption of military operations, while revisiting plans to escort commercial vessels through the Strait of Hormuz. The ongoing conflict has kept oil prices elevated, reinforcing inflation risks and strengthening expectations that interest rates may need to remain higher for longer to contain price pressures. Meanwhile, investors were awaiting April’s consumer inflation report for clearer signals on how the Iran war is affecting the economy and shaping the Federal Reserve’s policy outlook. Trump is also set to meet with Chinese President Xi Jinping later this week, with trade relations and artificial intelligence expected to dominate the agenda.
2026-05-12
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 March. 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