Geopolitical risks and Fed rate hike bets support the dollar index near 100.00 before key US nonfarm payrolls data.
The US Dollar Index (DXY) remains steady around 100.00 in early Asian trading, supported by geopolitical tensions and expectations of a Federal Reserve rate hike. Traders await the US nonfarm payrolls (NFP) report for further clues on monetary policy.
Recent developments in the Middle East, including threats to Saudi Arabia and potential restrictions in the Strait of Hormuz, have heightened risk aversion. Oil prices rose overnight, stoking inflation concerns and reinforcing hawkish Fed expectations, which underpin elevated US bond yields.
Despite the supportive backdrop, bullish traders remain cautious ahead of the NFP release. The report could influence the Fed’s policy trajectory, adding to the dollar’s near-term volatility.