The US Dollar Index (DXY) rose slightly to around 99.3 points during trading on Friday, after falling 0.8% in the previous session, amid continued tensions related to Iran and declining prospects for a quick resolution to the crisis.
This limited improvement in the dollar's performance came despite continued volatility in oil prices, which remained near their highest levels since 2022, increasing concerns about their impact on inflation, especially at a time when central banks are adopting a more cautious and stringent approach.
In this context, the Federal Reserve kept interest rates unchanged at its last meeting, citing continued uncertainty about the economic impact of geopolitical tensions, along with warnings of upside risks to inflation. Despite this, the bank's projections still indicate the possibility of one rate cut this year.
The US dollar saw gains against a number of major currencies, most notably against the Japanese yen, amid the gap between central bank policies.
Despite its rise on Friday, the dollar is still on track to record a weekly loss of nearly 1%, as global markets remain on edge regarding geopolitical developments and the course of monetary policy.
📌 Summary
The dollar is rising slightly, supported by global tensions, but remains under pressure on a weekly basis, amid oil volatility, increasing uncertainty about inflation, and central bank decisions.