US Dollar Pulls Back from 15-Month High

2026-06-30 15:30 By Andre Joaquim 1 min. read

The dollar index was at 101.1 on Tuesday, holding the pullback from the 15-month high of 101.6 on June 24th as lower risks of rampant inflation eased the magnitude of rate hikes expected by the Federal Reserve.

Satellite data indicated that the traffic of tankers leaving the Persian Gulf with cargoes picked up after Iran and the US signed their memorandum of understanding and lifted their naval blockades.

The outlook of restored energy supply from the region lowered oil and fuel costs and drove rate traders to pivot out of their positions reflecting multiple rate hikes this year.

Still, hawkish projections from the FOMC were aligned with recent data pointing to strong labor market conditions and stubborn core inflation maintained the risk of policy calibration to the restrictive level.

The DXY was further supported by a fiscally dovish Japan that pressured the yen to a four-decade low, while softer-than-expected inflation prints in the Eurozone limited strength on the euro.



News Stream
US Dollar Pulls Back from 15-Month High
The dollar index was at 101.1 on Tuesday, holding the pullback from the 15-month high of 101.6 on June 24th as lower risks of rampant inflation eased the magnitude of rate hikes expected by the Federal Reserve. Satellite data indicated that the traffic of tankers leaving the Persian Gulf with cargoes picked up after Iran and the US signed their memorandum of understanding and lifted their naval blockades. The outlook of restored energy supply from the region lowered oil and fuel costs and drove rate traders to pivot out of their positions reflecting multiple rate hikes this year. Still, hawkish projections from the FOMC were aligned with recent data pointing to strong labor market conditions and stubborn core inflation maintained the risk of policy calibration to the restrictive level. The DXY was further supported by a fiscally dovish Japan that pressured the yen to a four-decade low, while softer-than-expected inflation prints in the Eurozone limited strength on the euro.
2026-06-30
Dollar Poised for Second Monthly Gain
The dollar index climbed to around 101.2 on Tuesday and was on track for a second straight monthly advance, supported by expectations that the Federal Reserve will increase interest rates this year. The index has gained more than 2% so far this month, putting it on course for its strongest monthly performance since July last year. Markets continue to price in at least one rate hike by the Fed this year, with the first potentially coming as soon as September, while some investors are betting on additional hikes thereafter. Investors are also awaiting the upcoming US monthly jobs report for further clues on the central bank's policy path. Meanwhile, the US and Iran were scheduled to resume peace talks in Doha following a pause in recent hostilities, though prospects for a lasting ceasefire remain uncertain. A major sticking point remains after Tehran reiterated its intention to oversee traffic through the Strait of Hormuz even if Oman decides not to participate.
2026-06-30
US Dollar Eases from 14-Month High
The US dollar index eased to 101.2 from the 14-month high of 101.8 on June 24th as lower inflationary risks drove the market to scale back the magnitude of rate hikes expected by the Federal Reserve. US and Iran were set to resume peace talks after halting their recent attacks. This added continuity to increasing flows of tankers from the Persian Gulf following the memorandum of understanding signed by both countries, making crude oil prices retreat toward their pre-war levels. Higher energy costs had driven a portion of FOMC members to project multiple rate hikes by the central bank this year, aligned with evidence of traction in core inflation. The strength of the greenback was also owed to evidence of a robust labor market, set to be tested again with this week's jobs report. In the meantime, hawkish monetary turns were also tamed by other G10 central banks, including the ECB and BoJ, which have already raised interest rates to counteract accelerating prices.
2026-06-29