Dollar Set for Weekly Gain

2026-06-05 02:26 By Jam Kaimo Samonte 1 min. read

The dollar index steadied around 99.4 on Friday and remained on track for a weekly advance as ongoing uncertainty in the Middle East continued to support safe-haven demand the currency.

President Donald Trump said peace negotiations were approaching their final stage and is reportedly reluctant to return to full-scale conflict with Iran despite recent hostilities.

However, Iranian Foreign Minister Abbas Araghchi said no meaningful progress had been achieved in the talks, while Iran-backed Hezbollah rejected a US-mediated ceasefire proposal between Israel and Lebanon.

In the US, investors turned their attention to the May employment report for further clues on labor market strength and the direction of Federal Reserve policy.

Recent labor market data pointed to continued resilience in the economy, reinforcing expectations that the Fed could raise interest rates before year-end as officials contend with an energy-driven inflation shock tied to the Middle East conflict.



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Dollar Set for Weekly Gain
The dollar index steadied around 99.4 on Friday and remained on track for a weekly advance as ongoing uncertainty in the Middle East continued to support safe-haven demand the currency. President Donald Trump said peace negotiations were approaching their final stage and is reportedly reluctant to return to full-scale conflict with Iran despite recent hostilities. However, Iranian Foreign Minister Abbas Araghchi said no meaningful progress had been achieved in the talks, while Iran-backed Hezbollah rejected a US-mediated ceasefire proposal between Israel and Lebanon. In the US, investors turned their attention to the May employment report for further clues on labor market strength and the direction of Federal Reserve policy. Recent labor market data pointed to continued resilience in the economy, reinforcing expectations that the Fed could raise interest rates before year-end as officials contend with an energy-driven inflation shock tied to the Middle East conflict.
2026-06-05
Dollar Eases But Hovers Close to 2-Month Highs
The dollar index slipped to 99.2 on Thursday, snapping a three-session winning streak, as crude prices retreated after hopes increased that a ceasefire agreement between Israel and Lebanon could pave the way for a broader diplomatic deal with Iran. Despite the improvement in market sentiment, uncertainty remains elevated and the geopolitical situation continues to be highly fragile, with oil prices still significantly above pre-conflict levels and the greenback continuing to trade near two-month highs. Investors price in the possibility of a Fed interest rate hike before year-end, potentially as early as October, amid concerns that higher energy costs could fuel inflationary pressures. At the same time, recent labor market data have pointed to a resilient US economy, with employment conditions strengthening over the past two months. Friday's jobs report is expected to provide further clues about the health of the labor market and the outlook for monetary policy.
2026-06-04
Dollar Holds Near Two-Month High
The dollar index traded around 99.4 on Thursday, remaining close to a two-month high as stronger-than-expected US labor market data reinforced expectations of tighter Federal Reserve policy. The latest ADP report showed private-sector employment increased by 122K in May, surpassing forecasts and marking the strongest reading since January 2025. Earlier this week, JOLTS data revealed that job openings rose in April to their highest level since November 2024. Investors are now awaiting Friday’s nonfarm payrolls report for further insight into labor market conditions. The dollar also continued to draw support from escalating tensions in the Middle East, which have kept oil prices elevated and added to inflationary pressures. Markets currently assign an 85% probability to a quarter-point Fed rate hike by year-end, up from 60% a week earlier.
2026-06-04