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Dollar Index slides toward three-week low as US-Iran tensions ease
The DXY was about 0.3% lower near 100.60, while higher oil prices and inflation concerns are seen as a cushion for the dollar.
The US Dollar Index, which measures the greenback against six major currencies, extended its decline for a third straight session, sliding about 0.3% to near 100.60 and revisiting a three-week low, according to FXStreet.
FXStreet linked the weakness in safe-haven demand to signs of de-escalation in the US-Iran standoff, including reports that Washington remains committed to the memorandum of understanding and that technical talks are continuing despite earlier comments that the MoU was over.
The dollar's downside, however, appears limited by oil price pressures, FXStreet said, noting that renewed energy supply disruption fears have helped lift inflation expectations. Those inflation projections could reduce the appetite for faster US rate cuts.
FXStreet also pointed to Fed communications and policy work underway, including that Fed Chair Kevin Warsh unveiled members of five task forces focused on areas such as communications, balance sheet policy, and developing inflation frameworks.
Latest closeDollar index 100.94 ▼0.1%