US Dollar Extends Decline

2026-07-23 01:32 By Czyrill Jean Coloma 1 min. read

The dollar index fell to around 101 on Thursday, extending losses from the previous session as traders weighed renewed inflation concerns from surging energy costs against a softer US economic backdrop while seeking clues on the Federal Reserve’s rate outlook.

While markets widely expect the Fed to hold rates steady at next week’s meeting, uncertainty has increased over the path of future policy amid unclear guidance from new Chair Kevin Warsh.

Meanwhile, safe-haven demand helped limit further dollar losses as Middle East tensions remained in focus.

President Donald Trump said the US would strike Iranian infrastructure in response to any attacks on vessels in the Strait of Hormuz, while Tehran vowed retaliation against regional energy and infrastructure targets.

Elsewhere, attacks on Red Sea tankers, the first such incidents since late February, further raised concerns over a broader regional conflict and potential disruptions to global trade flows.



News Stream
US Dollar Extends Decline
The dollar index fell to around 101 on Thursday, extending losses from the previous session as traders weighed renewed inflation concerns from surging energy costs against a softer US economic backdrop while seeking clues on the Federal Reserve’s rate outlook. While markets widely expect the Fed to hold rates steady at next week’s meeting, uncertainty has increased over the path of future policy amid unclear guidance from new Chair Kevin Warsh. Meanwhile, safe-haven demand helped limit further dollar losses as Middle East tensions remained in focus. President Donald Trump said the US would strike Iranian infrastructure in response to any attacks on vessels in the Strait of Hormuz, while Tehran vowed retaliation against regional energy and infrastructure targets. Elsewhere, attacks on Red Sea tankers, the first such incidents since late February, further raised concerns over a broader regional conflict and potential disruptions to global trade flows.
2026-07-23
Dollar Little Changed
The dollar index traded little changed around 101.1 on Wednesday, with the situation in the Middle East continuing to dominate the headlines. Oil prices extended gains to a six-week high as both the US and Iran signaled that a resumption of peace talks is unlikely in the near term despite ongoing mediation efforts. The rise in oil prices kept fears of renewed inflationary pressures elevated. Meanwhile, investors await next week's Federal Reserve policy meeting, with policymakers now in their customary pre-meeting blackout period. The Fed is widely expected to leave the federal funds rate unchanged. However, markets continue to price in the possibility of policy tightening later this year, with traders assigning roughly a 61% probability of a rate hike at the September meeting. The greenback was largely unchanged at 40-year highs against the yen and near one-week highs against the pound, while edging slightly lower against the euro.
2026-07-22
Dollar Holds Firm on Middle East Risks
The dollar index held above 101 on Wednesday after advancing for a fourth straight session, supported by higher Treasury yields and rising oil prices as the US carried out strikes on Iranian targets for an 11th consecutive night. President Donald Trump also downplayed the likelihood of near-term talks with Tehran, while Iran-backed Houthi rebels in Yemen disrupted shipping through the Red Sea. Meanwhile, a series of attacks on the Caspian Pipeline Consortium terminal along Russia’s Black Sea coast added to supply concerns. On the economic front, ADP data showed US private employers added an average of 16,500 jobs per week over the four weeks ending July 4, down from an average weekly gain of 19,250 in the prior four-week period, marking a fourth straight slowdown in hiring. Markets expect the Federal Reserve to leave interest rates unchanged at next week’s meeting, while pricing in more than a 55% chance of a rate hike in September.
2026-07-22