Dollar Index Little Changed

2026-07-08 11:13 By Joana Taborda 1 min. read

The dollar index was little changed above 101 on Wednesday, hovering near one-week highs as investors assessed the latest escalation in Middle East tensions.

US President Trump said that, "as far as I'm concerned, the ceasefire is over," while the US launched fresh strikes on Iran and revoked a waiver that had allowed the country to sell crude on global markets.

The latest developments followed a series of attacks on tankers transiting the Strait of Hormuz in recent days.

Oil prices surged again, bringing gains over the past two sessions to nearly 10%, reviving concerns about inflation and the prospect of further monetary tightening.

Reflecting this shift, traders raised their expectations for Fed rate hikes, with the implied probability of a September increase climbing to around 70%, up from 58% the previous day.

Investors now await the release of the FOMC meeting minutes for further clues about the Federal Reserve's policy outlook.



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Dollar Index Little Changed
The dollar index was little changed above 101 on Wednesday, hovering near one-week highs as investors assessed the latest escalation in Middle East tensions. US President Trump said that, "as far as I'm concerned, the ceasefire is over," while the US launched fresh strikes on Iran and revoked a waiver that had allowed the country to sell crude on global markets. The latest developments followed a series of attacks on tankers transiting the Strait of Hormuz in recent days. Oil prices surged again, bringing gains over the past two sessions to nearly 10%, reviving concerns about inflation and the prospect of further monetary tightening. Reflecting this shift, traders raised their expectations for Fed rate hikes, with the implied probability of a September increase climbing to around 70%, up from 58% the previous day. Investors now await the release of the FOMC meeting minutes for further clues about the Federal Reserve's policy outlook.
2026-07-08
Dollar Firms Up on Mideast Tensions
The dollar index held above 101 on Wednesday after advancing in the previous session, supported by renewed safe-haven demand as the US military carried out fresh air strikes on Iran following recent attacks on ships transiting the Strait of Hormuz. The latest escalation threatened the interim US-Iran peace deal to end the war and pushed oil prices higher, stoking inflation fears and raising prospects for interest rate hikes. Meanwhile, investors awaited the minutes of the Federal Reserve’s June meeting for additional clues on the policy outlook after the central bank adopted a more hawkish tone at its June policy meeting. Markets are currently pricing in around a 50% chance of a Fed rate increase in September, up from about 46% a day prior. Elsewhere, data on Tuesday showed the US trade deficit widened to $77.6 billion in May, the largest since March 2025.
2026-07-08
Dollar Index Edges Up
The dollar index edged higher toward the 101 mark on Tuesday after posting small losses in the previous two sessions, showing only a modest reaction to another increase in oil prices. Oil gained after reports that vessels had been attacked near the Strait of Hormuz, highlighting the fragile security situation in the Middle East and the potential risks to global energy supplies. The rise in oil prices revived inflation concerns and prompted traders to modestly increase bets on additional Fed rate hikes this year. Market-implied odds of a rate increase as early as September climbed to around 58%, up from 56% a day earlier. Investors are now awaiting the release of the FOMC meeting minutes on Wednesday for further clues about the Fed's policy outlook, following the central bank's more hawkish stance at its June meeting. The dollar posted modest gains against most major currencies but remained slightly weaker against the yen.
2026-07-07