ING strategist Francesco Pesole argues that a hawkish revision of the Federal Reserve Dot Plot could support the Dollar, with markets already pricing limited cuts.

UOB analysts note the broad Dollar index DXY fell for a second day to 99.57 as traders positioned ahead of the Fed decision and reacted to geopolitical tensions around Iran.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.60 during the Asian trading hours on Wednesday.

The US Dollar (USD) lost its firmness and is now on a two-day losing spree. The Greenback initially fell because investors were cautious over the Middle East war and Wednesday's Federal Reserve (Fed) monetary policy decision.

The US Dollar Index (DXY) eased around 0.2% on Tuesday, slipping back toward the 99.50–99.60 area after a failed attempt to recapture the psychologically significant 100.00 handle.

US stocks posted a second consecutive session of gains on Tuesday, with the Dow Jones Industrial Average (DJIA) adding around 0.3% to hold in the 47,000 region. The S&P 500 rose approximately 0.3%, and the Nasdaq Composite gained a similar amount.

Deutsche Bank’s Global Head of FX Research George Saravelos notes that the Iran war has made markets highly correlated to energy, with higher Oil prices and weaker global growth now supporting the Dollar. Asia FX is seen as central to broad Dollar direction and is being hit hardest.

TD Securities analysts note that US rates rallied as markets stabilised, with attention on Fed policy expectations and geopolitical headlines. While hike odds have risen, they pushes back, arguing the hawkish outcome is more likely a prolonged pause.

Dow Jones futures decline 0.27% to trade near 46,850 during European hours ahead of the US regular market open on Tuesday. S&P 500 and Nasdaq 100 futures fall 0.50% and 0.58% to trade near 6,670 and 24,530 at the time of writing.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, attracts some dip-buyers following the previous day's pullback from its highest level since May 2025.

The US Dollar (USD) holds its Monday’s corrective move, which was driven by a significant retracement in the oil price that eased de-anchored consumer inflation concerns.

United States (US) President Donald Trump said he encourages other countries to come and help the US, claiming that numerous countries told him they’re on their way when discussing the Strait of Hormuz ahead of a lunch at the Kennedy Center on Monday.

The Dow Jones Industrial Average (DJIA) climbed around 1.2% on Monday, reclaiming ground above 47,000 after Friday's subdued close near 46,500. The S&P 500 rose over 1%, recovering back toward the 6,700 level, while the Nasdaq Composite gained more than 1.2%, closing near 22,400.

BNY’s Head of Markets Macro Strategy Bob Savage underlines a notable break in traditional correlations between the Dollar, Oil and equities as investors navigate the Iran conflict and central bank meetings.

ING’s Chris Turner expects the Dollar to stay supported as the Middle East conflict keeps Oil prices elevated and markets await central bank responses. He sees this week’s FOMC meeting as Dollar-positive, with the Federal Reserve likely to push back against current rate-cut pricing.

Dow Jones futures gain 0.33% to trade near 46,750 during European hours ahead of the US regular market open on Monday. S&P 500 and Nasdaq 100 futures rise 0.49% and 0.51% to trade around 6,670 and 24,520 at the time of writing.

HSBC argues that recent Middle East tensions and “safe haven” demand have lifted the Dollar, helped by short USD covering and tighter US financial conditions.

MUFG’s Senior Currency Analyst Lee Hardman highlights a bullish breakout in the US Dollar index above its 96.000–100.00 range, supported by surging Oil prices after the Strait of Hormuz was effectively closed.

Brown Brothers Harriman’s (BBH) Elias Haddad notes the Dollar is tactically supported by haven demand linked to shipping risks in the Strait of Hormuz, even as the bank stays cyclically neutral on USD.

The US Dollar Index (DXY), which measures the Greenback's value against a basket of six major currencies, extends its advance on Friday and is set for a second consecutive weekly gain amid escalating Middle East tensions, which continue to boost demand for the US Dollar (USD).

Rabobank’s FX Strategy team argues the Dollar’s safe haven role has been confirmed by recent Middle East tensions and associated market stress.

The US Dollar Index (DXY) extends its advance on Friday, trading around 100.10 at the time of writing and gaining 0.35% for the day.

TD Securities expects robust US core PCE at 0.30% month-on-month and a softer headline, alongside a rebound in JOLTS job openings to 6.8 million, slightly above consensus.

Brown Brothers Harriman’s (BBH) Elias Haddad notes that the Dollar is supported as markets focus on risks to shipping through the Strait of Hormuz and higher Oil prices. With Brent above $100 and stagflation concerns weighing on bonds and stocks, USD is near cyclical highs.

MUFG’s Senior Currency Analyst Lloyd Chan highlights that the recent Oil price shock is reinforcing upside inflation risks in the United States and complicating the Federal Reserve’s policy outlook.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.70 during the Asian trading hours on Friday.

The new Supreme Leader of Iran, Mojtaba Khamenei, said that attacks on neighboring country military bases will inevitably continue, also adding that “Iran will not refrain from avenging the blood of its martyrs”.

The Greenback picks up further pace on Thursday, largely exceeding the 99.00 hurdle to hit fresh multi-month tops while nearing the psychological 100.00 hurdle when tracked by the US Dollar Index (DXY).

Brown Brothers Harriman’s (BBH) Elias Haddad argues the US Dollar is supported in the short term by haven flows and elevated Dollar funding needs during market stress.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.35 during the Asian trading hours on Thursday. The DXY edges higher amid further escalation in the Middle East conflict.