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Dollar Index holds near 100.80 as traders price US-Iran risk
FXStreet links the dollar's steady trade to escalating US-Iran tensions, with oil jumping after Strait of Hormuz risks and Fed hike expectations staying in focus for 2026.
The US Dollar Index, which tracks the greenback versus a basket of major currencies, was unable to attract fresh buying despite a modest uptick in the Asian session, trading around 100.80 to 100.75 and nearly unchanged on the day, according to FXStreet.
FXStreet said the near-term bias favors bullish traders as US-Iran tensions escalate and markets continue to price a geopolitical risk premium that supports the dollar's safe-haven appeal. The report cited a ninth straight round of US strikes on Iran, after a US service member was reported killed in Iraq, followed by Iranian ballistic missile and drone attacks on sites in Bahrain, Jordan, Kuwait, and Iraq.
The outlet also tied currency dynamics to energy markets, noting crude oil has risen to a fresh high since June 12. FXStreet attributed the move to heightened disruption concerns after the Strait of Hormuz faced a closure and the US naval blockade of Iranian ports, warning that higher oil could rekindle inflation worries and keep central banks, including the Fed, in a more hawkish posture.
Looking ahead, FXStreet said there is no US market-moving economic data scheduled for Monday, leaving the dollar to be driven by comments from influential FOMC members and any further geopolitical headlines. The piece added that CME Group's FedWatch Tool still shows traders pricing at least one Fed rate hike in 2026, supporting the dollar outlook while prompting caution for any dollar pullback traders.
Latest closeWTI crude $79.00 ▼0.8%|Dollar index 100.71 ▲0.2%