The US dollar index (DXY), which tracks the greenback against a basket of currencies, is regaining positive momentum after falling to a nearly two-week low the previous day and climbing to near 99.35 during Tuesday’s Asian session. Moreover, the fundamental backdrop appears to be tilting in favor of the US Dollar (USD) bulls.
President Donald Trump said on Monday that the United States had had productive talks with Iran and that an agreement could be reached soon. However, optimism fades quite quickly when Iran denies that it is in talks with the US to end the war in the Persian Gulf. Moreover, reports of strikes on Iranian gas infrastructure have increased the risk of further escalation of tensions in the Middle East, which is triggering a recent wave of risk-averse global trade and positively affecting the status of the global reserve currency USD.
According to Iran’s semi-official Fars news agency, a gas company’s office and a pressure reduction station were attacked in the central Iranian city of Isfahan. Additionally, the missile reportedly hit a gas pipeline feeding the Khorramshahr power plant. Moreover, severe energy trade disruptions as a result of the effective closure of the Strait of Hormuz are helping oil prices catch recent offers. This revives inflation fears and hawkish expectations from the Federal Reserve (Fed), which underpins the USD.
In fact, CME Group’s FedWatch tool shows little to no chance of a rate cut by the end of this year. The outlook, in turn, leads to a moderate escalate in the yield of US treasury bonds and turns out to be another factor supporting the dollar. The above-mentioned supporting factors confirm the near-term positive outlook for the dollar and support further daily appreciation movement for DXY. Traders are now eagerly awaiting the release of global flash PMIs to give them a boost.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Australian dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.22% | 0.26% | 0.13% | 0.17% | 0.55% | 0.34% | 0.22% | |
| EUR | -0.22% | 0.01% | -0.11% | -0.05% | 0.32% | 0.12% | -0.00% | |
| GBP | -0.26% | -0.01% | -0.09% | -0.07% | 0.31% | 0.10% | -0.02% | |
| JPY | -0.13% | 0.11% | 0.09% | 0.06% | 0.44% | 0.22% | 0.12% | |
| BOOR | -0.17% | 0.05% | 0.07% | -0.06% | 0.37% | 0.16% | 0.05% | |
| AUD | -0.55% | -0.32% | -0.31% | -0.44% | -0.37% | -0.21% | -0.35% | |
| NZD | -0.34% | -0.12% | -0.10% | -0.22% | -0.16% | 0.21% | -0.12% | |
| CHF | -0.22% | 0.00% | 0.02% | -0.12% | -0.05% | 0.35% | 0.12% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select 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).
