The US Dollar Index (DXY) rose to the 100.50 region, holding firm amid safe-haven demand following hawkish remarks by United States (US) President Donald Trump, who warned that the US could take a tougher stance against Iran if tensions continue to escalate.
The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, extends its advance on Monday, climbing back toward the ten-month highs reached earlier this month as demand for the US Dollar (USD) remains firm amid escalating tensions in the Middle East.
The Dow Jones Industrial Average (DJIA) traded higher on Monday, adding back around 415 points in a thin recovery from last week's late plunge as President Donald Trump suggested a resolution to the war with Iran may be within reach. The S&P 500 rose 0.5% and the Nasdaq Composite gained 0.3%.
ING’s Chris Turner notes the Dollar (USD) remains supported as Middle East tensions persist and US trading partners resort to intervention, tighter policy or regulatory measures to defend their currencies.
Dow Jones futures gain 0.20% to above 45,500 during European hours, ahead of the United States (US) regular market open on Monday. Meanwhile, S&P 500 and Nasdaq 100 futures rise 0.30% and 0.25% to near 6,430 and 23,390, respectively, at the time of writing.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, retreats slightly from the vicinity of the monthly top, around the 100.30 region, retested earlier this Monday.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally lower near 100.15 in the Asian trading session on Monday after retracing from its intraday high of 100.35. Still, the USD Index is close to its two-week high.
S&P 500 futures fall around 0.6% to 6,370, seven-month lows, during Asian trading hours, ahead of the US regular session open on Monday. US equity futures remain under pressure as risk aversion rises, with uncertainty over a resolution to the Iran conflict deepening.
The Dow Jones Industrial Average tumbled on Friday, shedding roughly 510 points or 1.1% to fall below 45,500 and officially enter correction territory.
Brown Brothers Harriman’s (BBH) Elias Haddad highlights that global risk sentiment is deteriorating as Oil rises, equities and bonds fall, and the Dollar strengthens.
Nordea’s Jan von Gerich observes that recent equity weakness has not produced a stronger Dollar, suggesting its traditional safe-haven role is less dominant than before.
MUFG’s Derek Halpenny notes that the US Dollar’s initial weakness after President Trump extended the pause in attacks on Iran’s energy assets has been short-lived, with DXY only slightly lower.
DBS analysts Philip Wee and Chang Wei Liang argue that the Dollar’s (USD) broader downtrend has been interrupted by war-related haven demand and elevated Oil prices.
The US Dollar Index (DXY) rallied about 0.3% on Thursday, climbing from a session low around 99.56 to trade close to 99.90 as the Greenback continued to attract safe-haven interest for a third consecutive trading day.
The US Dollar Index (DXY) surged to near 99.90, holding steady as safe-haven demand amid Middle East tensions and rate differentials underpinned the Greenback amid a cautious market mood.
The Dow Jones Industrial Average fell around 230 points, or roughly 0.5%, on Thursday, giving back the previous session's gains as surging Oil prices and collapsing ceasefire optimism crushed risk appetite. The S&P 500 dropped 0.8%, while the tech-heavy Nasdaq Composite shed 1.1%.
The US Dollar Index (DXY), which measures the Greenback’s value against a basket of six major currencies, holds firm on Thursday as the US Dollar remains well supported amid ongoing geopolitical tensions surrounding the US-Israel war with Iran.
Brown Brothers Harriman’s (BBH) Elias Haddad notes renewed risk aversion is lifting the Dollar as the Iran conflict escalates, with Oil higher and global equities and bonds weaker.
BNY strategist Geoff Yu argues that rising European real yields are increasingly offsetting traditional support for the Dollar from higher US real rates. He notes that the spread between US and European real rates has stayed tight, limiting further Dollar upside.
Dow Jones futures decline 0.39% below 46,550 during European hours, ahead of the United States (US) regular market open on Thursday. Meanwhile, S&P 500 and Nasdaq 100 futures fall 0.40% and 0.44% to near 6,610 and 24,250, respectively, at the time of writing.
Markets were driven by a shift in geopolitical sentiment as reports of potential ceasefire talks initially eased tensions. However, uncertainty quickly resurfaced after Iran signaled reluctance to engage with the United States, highlighting fragile diplomatic progress and keeping markets on edge.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that global risk sentiment has improved as markets position for a potential conflict resolution involving Iran, with DXY consolidating below 100.00.
ING’s Chris Turner argues it is premature to expect a sustained Dollar sell-off as Middle East tensions keep energy prices elevated and support safe-haven demand.
Dow Jones futures inch higher 0.7% to near 46,750 during European hours, ahead of the United States (US) regular market open on Wednesday. Meanwhile, S&P 500 and Nasdaq 100 futures gains 0.6% and 0.63% to near 6,650 and 24,360, respectively, at the time of writing.
TD Securities strategists argue that US Dollar upside should persist while global risk premia stay elevated, even though their longer-term 2026 view remains bearish.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, extends its gains for the second consecutive day, trading around 99.30 during the Asian hours on Wednesday.
The US Dollar Index rose about 0.3% on Tuesday, recovering to around 99.40 after Monday's sharp sell-off to a near two-week low.
The Dow Jones Industrial Average eked out a modest gain on Tuesday, adding around 40 points after a volatile premarket session, as markets struggled to build on Monday's sharp rebound. The S&P 500 dipped 0.1% while the Nasdaq Composite dropped 0.5%, weighed down by weakness in tech names.
Deutsche Bank’s Mallika Sachdeva argues that the Iran conflict could test the foundations of the petrodollar regime and, by extension, the Dollar’s role as the world’s reserve currency.
MUFG’s Senior Currency Analyst Lee Hardman notes the US Dollar remains under pressure after a sharp sell-off linked to de-escalation in the Middle East. The Dollar index again failed to clear 100.00 and retreated toward 98.88.