US Dollar Index (DXY) eases from YTD peak, trades below 100.50 on Iran de-escalation hopes
- DXY attracts some sellers following a modest Asian session rise to a fresh YTD top.
- Trump is reportedly open to ending the war without reopening the Strait of Hormuz.
- Inflation concerns and rising Fed rate hike bets should help limit losses for the USD.
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, retreated from its highest level since May 2025, touched during the Asian session this Tuesday, snapping a five-day winning streak. The index, however, lacks follow-through selling amid contrasting headlines over peace talks to end the war in the Middle East and currently trades around the 100.40-100.45 region, down less than 0.10% for the day.
The Wall Street Journal reported on Monday that US President Donald Trump is willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed. The headlines trigger a turnaround in the global risk sentiment, which, in turn, is seen undermining the safe-haven USD. Furthermore, a corrective pullback in Crude Oil prices helps ease inflationary concerns and keep US Treasury bond yields on the defensive, turning out to be another factor weighing on the Greenback.
Meanwhile, Trump issued a stark warning that the US could launch massive strikes on Iran's key energy infrastructure if a deal is not reached soon and if the Strait of Hormuz is not immediately reopened to commercial traffic. Moreover, Iran has signaled reluctance to engage in direct negotiations with the US, highlighting fragile diplomatic progress. Adding to this, the US is still deploying additional troops and assets to the region, fueling uncertainty about a quick de-escalation of tensions in the region.
This should act as a tailwind for Crude Oil prices, which keeps inflation risks and bets for a rate hike by the US Federal Reserve (Fed) in play. The hawkish outlook, in turn, should help limit deeper losses for the USD and warrants some caution before confirming that the index has topped out in the near term. Traders now look to the US economic data – JOLTS Job Openings and the Conference Board's US Consumer Confidence Index, for a fresh impetus later during the North American session.
US Dollar Price Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.14% | -0.03% | 0.03% | -0.01% | 0.03% | -0.12% | |
| EUR | 0.06% | -0.07% | 0.05% | 0.13% | 0.08% | 0.12% | -0.03% | |
| GBP | 0.14% | 0.07% | 0.13% | 0.21% | 0.16% | 0.20% | 0.05% | |
| JPY | 0.03% | -0.05% | -0.13% | 0.06% | 0.02% | 0.05% | -0.08% | |
| CAD | -0.03% | -0.13% | -0.21% | -0.06% | -0.04% | -0.00% | -0.15% | |
| AUD | 0.00% | -0.08% | -0.16% | -0.02% | 0.04% | 0.05% | -0.11% | |
| NZD | -0.03% | -0.12% | -0.20% | -0.05% | 0.00% | -0.05% | -0.16% | |
| CHF | 0.12% | 0.03% | -0.05% | 0.08% | 0.15% | 0.11% | 0.16% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
