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Dollar index eases as 2-year yields rise and Middle East oil risks linger

The US Treasury 2-year yield rose even as the DXY slipped, while futures pricing lifted September Fed hike odds to above 50% despite divided FOMC Minutes.

Reported · Written up by our desk · Major Pairs

The US Dollar Index, or DXY, slipped from 101.28 to 101 late in the US session, even as the US Treasury 2-year yield rose, according to FXStreet. The report also pointed to crude oil holding support linked to Middle East tensions.

FXStreet said futures pricing now shows September Fed hike odds above 50%. It added that the Federal Open Market Committee Minutes suggest a divided committee and limited forward guidance from Fed Chair Kevin Warsh.

The dollar move came alongside conflicting signals in markets, with FXStreet noting that Trump clarified the US blockade applies strictly to Iranian ports, and Treasury Secretary Scott Bessent said safe and secure oil should trade at a premium.

FXStreet also flagged that volatile headline risk remains, with geopolitical concerns continuing to support the greenback even as the broader US dollar showed signs of easing. In the same wrap, it said GBP/USD held near 1.3400 after a three-week high above 1.3430, while EUR/USD consolidated gains above 1.1400.

Latest closeWTI crude $81.23 ▼1.7%|EUR/USD 1.139 ▼0.1%|GBP/USD 1.329 ▼0.5%

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