Dollar Holds Steady Amid US-Iran Impasse

2026-06-03 02:03 By Jam Kaimo Samonte 1 min. read

The dollar index hovered around 99.2 on Wednesday, maintaining gains from earlier in the week as stalled US-Iran peace negotiations and renewed tensions in the Middle East continued to underpin safe-haven demand.

According to the US Central Command, Iran launched ballistic missiles toward neighboring countries, while US forces carried out strikes on Qeshm Island in response to attempted attacks by Tehran.

The ongoing conflict has kept energy prices elevated, fueling concerns about inflation and reinforcing expectations that interest rates could remain higher for longer.

Supporting that view, data released on Tuesday showed US job openings surged in April to their highest level in nearly two years, while layoffs declined.

Investors are now awaiting the release of private payrolls data later on Wednesday, with attention also turning to Friday’s closely watched nonfarm payrolls report for further insight into the Federal Reserve’s policy outlook.



News Stream
Dollar Holds Steady Amid US-Iran Impasse
The dollar index hovered around 99.2 on Wednesday, maintaining gains from earlier in the week as stalled US-Iran peace negotiations and renewed tensions in the Middle East continued to underpin safe-haven demand. According to the US Central Command, Iran launched ballistic missiles toward neighboring countries, while US forces carried out strikes on Qeshm Island in response to attempted attacks by Tehran. The ongoing conflict has kept energy prices elevated, fueling concerns about inflation and reinforcing expectations that interest rates could remain higher for longer. Supporting that view, data released on Tuesday showed US job openings surged in April to their highest level in nearly two years, while layoffs declined. Investors are now awaiting the release of private payrolls data later on Wednesday, with attention also turning to Friday’s closely watched nonfarm payrolls report for further insight into the Federal Reserve’s policy outlook.
2026-06-03
Dollar Little Changed on Tuesday
The dollar index was flat to lower around 99.1 on Tuesday, helped by a modest retreat in oil prices, although sentiment remained sensitive to developments in the Middle East. US President Trump said Israel and Hezbollah had agreed to halt attacks against each other in Lebanon and that discussions with Iran were ongoing. On Monday, borrowing costs had risen after Iran’s Tasnim news agency reported that Iranian negotiators were pausing talks with the US following Israeli strikes in Lebanon, with Tehran also reportedly considering a full closure of the Strait of Hormuz. Investors are now awaiting key labour market data later this week, including the US jobs report, which is expected to help shape expectations for Federal Reserve policy under the new chair, Kevin Warsh. Traders are currently pricing in around 17 basis points of rate hikes by year-end, implying roughly a 70% probability of a 25bps increase, with a full hike priced in by March 2027.
2026-06-02
Dollar Holds Gains Amid US-Iran Impasse
The dollar index remained above 99 on Tuesday after advancing in the previous session, as stalled peace negotiations between the US and Iran bolstered safe-haven demand while keeping inflation risks and interest rate expectations in focus. On Monday, Iranian media reported that Tehran had suspended communications with Washington in response to Israeli attacks in Lebanon. Meanwhile, President Donald Trump said discussions are still ongoing and suggested that a memorandum of understanding with Iran to reopen the Strait of Hormuz could be reached within the next week. Nevertheless, rising energy-driven inflation has led markets to price in the possibility of a Federal Reserve rate hike before year-end. Investors are now awaiting Tuesday’s JOLTS job openings report, followed by the closely watched US monthly employment data on Friday, for further insight into the Fed’s policy outlook.
2026-06-02