US Dollar towers high on steady inflation

The US dollar emerged stronger against other currencies after the latest inflation reading matched  forecasts, fueling speculations that the Federal Reserve will maintain rates for longer. The headline inflation remained unchanged at 2.4%, while the Core CPI and CPI stood at 0.2% and 0.3% respectively, meeting expectations. The US dollar index rose about 0.34%, closing above 99.00

In addition to that, haven demand inflow from investors has also contributed to the US dollar strength as the ongoing escalation in Iran drags-on. In the latest update, attacks on shipping vessels passing through the Strait of Hormuz has seen oil prices resume its rally after experiencing a sharp drop due to comments from Donald Trump that the war could be ending very soon. As of the early hours of today(March 12, 2026), the WTI is trading above $91/barrel, while the UK Brent nears $97/barrel.

Technical outlook

The overall structure on the Dollar index still remains bullish as the price has been forming higher lows since the end of February 2026. A key resistance zone around 99.70-99.72 could still be vital for the bears to step in as the price was strongly rejected from that level previously. In a scenario where we have a clear breakout of this zone, then we could see the price rally towards 100.20-100.50. However, a rejection from this level will confirm a double top formation and could see the price correct towards 98.90-98.60.

On the flip side, the current support zone around 99.32 remains important for sustenance of the bullish momentum. If this level holds, the we could see the price test the near-term resistance at 99.530. Failure to hold this level, could see the price experience a deeper retracement into the trend with the ascending trendline sitting around 98.70-98.80.