Investors shrug off US-Iran military strikes, keeping the Dollar Index near 101.00 amid hopes for peace talks.
The US Dollar Index (DXY) dipped below 101.00 in European trading on Wednesday, reversing earlier gains after US forces struck over 80 Iranian targets. The move followed Iran’s retaliatory claims of hitting 85 US military sites in Kuwait and Bahrain, though markets largely dismissed escalation risks.
The DXY remains within its weekly range, failing to break past 101.20 despite fresh hostilities. Traders view the skirmishes as posturing ahead of negotiations, not a threat to the broader ceasefire. The index has oscillated near 101.00 since the conflict’s latest flare-up.
Oil exports were also restricted after the US revoked Iranian shipment authorizations. However, the dollar’s reaction has been muted, reflecting investor confidence in a negotiated resolution. Regional authorities confirmed missile and drone alerts but no major disruptions.