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Dollar steadies near breakeven as Iran pause cools safe-haven demand

The DXY slipped earlier toward about 101.4 as investors looked ahead to the Fed meeting on a backdrop of oil’s sharp drop.

Reported · Written up by our desk · Major Pairs

The US dollar traded mostly unchanged on Monday as a temporary pause in hostilities between the United States and Iran reduced demand for safe-haven assets, according to FXStreet.

The US Dollar Index, DXY, fell slightly earlier in the session, toward about 101.4, before moving back to near breakeven by late in the US afternoon, helped by a sharp decline in oil that eased energy driven inflation concerns.

FXStreet said markets are preparing for the Federal Reserve’s two day monetary policy meeting, with expectations that the Fed will keep its target range at 3.5% to 3.75%, while interest rate risk remains in view due to persistent inflation.

In major pairs, EUR/USD was near 1.1370 and largely unchanged, GBP/USD was around 1.33 and under pressure ahead of the Bank of England decision, and USD/JPY sat near 163.70 as the yen gained on falling oil, even as it stayed close to multi decade highs ahead of the Bank of Japan meeting.

Latest closeEUR/USD 1.137 ▼0.3%|USD/JPY 163.79 ▲0.4%|GBP/USD 1.332 ▼0.4%

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