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Dollar Index stays near 101 as safe-haven demand rises on Iran tensions
Expectations for a September Fed rate hike rose to about 55%, from 51% the prior day, as tensions fueled concerns about inflation and further rate hikes.
The US Dollar Index, a gauge of the dollar against six major currencies, held in positive territory near 101.0 during the Asian session, supported by growing safe-haven demand, according to FXStreet.
The outlet tied the move to heightened hostilities between the United States and Iran, including a protracted series of attacks that have pushed oil prices higher, reviving worries about inflation and additional interest-rate increases.
FXStreet also said market pricing for a September Fed rate hike climbed to around 55%, up from 51% the previous day. Separately, Federal Reserve officials have entered a blackout period ahead of next week’s FOMC meeting, where policymakers are widely expected to keep the federal funds rate steady.
The article noted that US attacks continued for a tenth straight day and referenced further regional escalation, including retaliatory strikes from Tehran and an Iran-backed Houthi maritime embargo announcement impacting Red Sea shipments.
Latest closeDollar index 99.98 ▲0.3%