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Dollar steadies above 99.50 on safe-haven demand amid Iran tensions
DXY is trading near 99.60 as traders weigh the Fed July meeting minutes and a shift in pricing for a September rate hike.
The US Dollar Index (DXY), which tracks the dollar versus six major currencies, is holding steady after small gains and is trading around 99.60 during Asian hours, keeping it above 99.50, according to FXStreet.
FXStreet reports that safe-haven demand is providing support for the dollar amid ongoing geopolitical friction between the United States and Iran, with traders citing continued elevated shipping risks in the Strait of Hormuz and noting that there is no clear sign of an agreement to end the conflict.
At the same time, the outlet says expectations for US interest rates may cap the greenback, pointing to easing odds for a rate hike at the September meeting based on CME FedWatch pricing, after a drop to a 35% chance from 47% a month earlier.
FXStreet adds that traders are looking ahead to the Fed July meeting minutes for clues on policy, as recent data showed US retail sales falling in July for the first time in nine months and the Fed left rates unchanged at its last meeting with three officials dissenting in favor of a hike.
Latest closeDollar index 99.64 ▼0.3%