The US Dollar Index rebounds to 99.93 after geopolitical risks resurface, overshadowing earlier optimism on US-Iran talks.
The United States Dollar Index (DXY) erased earlier losses, climbing to 99.93 after dipping to an intraday low of 99.68. The rebound follows shifting sentiment as hopes for a US-Iran deal fade amid renewed tensions in the Middle East.
Earlier, President Donald Trump suggested progress in negotiations, but later reports of Iran downing a US helicopter and ongoing military operations in Lebanon dampened optimism. Markets remain cautious as key disputes, including Iran’s nuclear program and control over the Strait of Hormuz, remain unresolved.
Investors are also focused on Wednesday’s US inflation report, with energy-driven price pressures supporting hawkish Federal Reserve expectations. Safe-haven demand continues to underpin the Greenback.