Stalled US-Iran peace talks and April’s stronger-than-expected jobs report lift the Dollar Index past 98.000.
The US Dollar Index (DXY) climbed back above 98.000 as stalled Middle East peace negotiations and robust April Nonfarm Payrolls (NFP) data bolstered demand. Reports indicate the US and Iran rejected each other’s latest proposals, dimming hopes for a swift resolution to the Strait of Hormuz conflict.
The April NFP report exceeded expectations, reinforcing expectations that the Federal Reserve will maintain current interest rates. The DXY had found support at 98.000 over the past month, with geopolitical risks and firmer US labor data driving recent gains.
Analysts suggest a prolonged closure of the Strait of Hormuz could disrupt global markets, further supporting the USD as a safe-haven asset. The Fed’s likely pause on rate cuts remains a key factor in the dollar’s resilience.