Dollar Holds Near 13-Month Peak

2026-06-22 02:12 By Jam Kaimo Samonte 1 min. read

The dollar index traded around 100.8 on Monday, remaining close to its strongest level since May 2025 as investors assessed evolving developments in US-Iran peace negotiations while awaiting a key US inflation reading.

Reports suggested that Washington and Tehran had agreed on a roadmap toward a final deal within 60 days, easing concerns after both sides exchanged fresh threats linked to the conflict in Lebanon.

Market participants are now focused on this week's US PCE price index release, the Federal Reserve’s preferred measure of inflation.

Last week, the Fed left interest rates unchanged but struck a more hawkish tone.

Nine of the 19 policymakers now anticipate at least one rate increase before the end of the year, with markets increasingly pricing in a potential hike as early as September.

Elsewhere, traders continued to monitor the Japanese yen amid rising intervention concerns and the British pound against the backdrop of political uncertainty in London.



News Stream
Dollar Holds Near 13-Month Peak
The dollar index traded around 100.8 on Monday, remaining close to its strongest level since May 2025 as investors assessed evolving developments in US-Iran peace negotiations while awaiting a key US inflation reading. Reports suggested that Washington and Tehran had agreed on a roadmap toward a final deal within 60 days, easing concerns after both sides exchanged fresh threats linked to the conflict in Lebanon. Market participants are now focused on this week's US PCE price index release, the Federal Reserve’s preferred measure of inflation. Last week, the Fed left interest rates unchanged but struck a more hawkish tone. Nine of the 19 policymakers now anticipate at least one rate increase before the end of the year, with markets increasingly pricing in a potential hike as early as September. Elsewhere, traders continued to monitor the Japanese yen amid rising intervention concerns and the British pound against the backdrop of political uncertainty in London.
2026-06-22
Dollar Hovers at a One-Year High
The dollar index traded around 100.8 on Friday, holding near one-year highs as prospects of higher interest rates supported the currency following a hawkish Fed Reserve signal. The Fed left rates unchanged as expected but noted growing support for tighter policy later this year. Around half of FOMC members now project at least one rate hike in 2026. New Fed Chair Kevin Warsh declined to provide guidance on the next policy move but emphasised that inflation has remained above the 2% target for several years, reaffirming the Fed’s commitment to restoring price stability. Markets are currently pricing in roughly a 50% chance of a 25bp rate hike in September. Geopolitical concerns also resurfaced after US-Iran talks scheduled for Friday in Geneva were cancelled. Reports also suggested thinner traffic through the Strait of Hormuz, contributing to firmer oil prices. The dollar gained about 1.1% over the week.
2026-06-19
Dollar Towers on Hawkish Fed Signals
The dollar index rose to around 101 on Friday, scaling its highest levels since May 2025 as investors piled on rate hike bets this year following hawkish signals from the Federal Reserve. On Wednesday, the Fed left rates unchanged as widely expected, but roughly half of FOMC members now anticipate at least one rate increase in 2026. The central bank also raised its inflation projections to account for the economic effects of the conflict in the Middle East. Chair Kevin Warsh declined to provide guidance on the next policy move but reaffirmed the Fed’s commitment to restoring price stability. Meanwhile, the US-Iran interim peace agreement took effect on Thursday, bringing an end to a prolonged conflict that triggered a historic disruption to global energy supplies. While the deal helped ease geopolitical risks and pushed oil prices lower, markets remained focused on the Fed’s policy outlook and the prospect of tighter monetary conditions.
2026-06-19