US Dollar Index declines 0.14% to 100.93 as reduced geopolitical risks lower oil prices and Fed rate hike expectations.
The US Dollar Index (DXY) fell 0.14% to 100.93 as easing Middle East tensions dragged oil prices lower, reducing inflation concerns and Fed tightening bets. WTI crude dropped 3.50% to $72.07 amid de-escalation efforts following recent US-Iran clashes near the Strait of Hormuz.
Initial jobless claims for the week ending July 4 came in at 215K, below the 218K estimate and down from the prior 217K. FOMC minutes released Wednesday showed most officials favored further tightening, though recent data led some to pause. Markets now price an 87% chance of a rate hike in 2026.
The shift in geopolitical dynamics and softer inflation expectations weighed on the dollar, while Fed officials reiterated inflation remains elevated despite recent easing in energy costs.