The U.S. Dollar Index (DXY), which tracks the value of the dollar against a basket of six major currencies, continued to rally on Tuesday, hitting its highest level since May 2025. At the time of writing, the index is trading around 100.40, up 0.4% on the day.
The dollar’s advance gained momentum after the index moved decisively above the 100.00 mark, ending a long period of confined trading. The positive effects come as investors increasingly price in the possibility of a Federal Reserve (Fed) interest rate hike later this year following last week’s monetary policy meeting at which Chairman Kevin Warsh reaffirmed the central bank’s commitment to bringing inflation back to its 2% target.
Meanwhile, stable U.S. economic data reinforced expectations that the Fed could afford to raise borrowing costs. Economic activity remains in an area of expansion while the labor market appears to be stabilizing.
The preliminary S&P Global Services Purchasing Managers Index (PMI) rose to 51.3 from 50.7, while the manufacturing PMI accelerated to 55.7 from 55.1. Both readings exceeded market expectations. ADP’s four-week average of employment changes increased to 30.75K. from 26.5 thousand
According to the CME FedWatch Tool, markets are currently pricing in a 70% chance of an interest rate raise at the September meeting. Attention now turns to the personal consumption expenditures (PCE) inflation report and the final estimate of first-quarter gross domestic product (GDP), both released on Thursday, for novel clues about the Fed’s policy outlook.
At the same time, attention remains on the U.S.-Iran negotiations after the two sides reached a 60-day memorandum of understanding last week. Talks are progressing, but the situation remains fluid and the risk of setbacks persists, especially over Iran’s nuclear program. Uncertainty over whether a final agreement can be reached means demand for the safe-haven US dollar remains intact.
Technical analysis:
On the daily chart, the dollar’s short-term bias is bullish as the price remains well above the 50-, 100- and 200-day basic moving averages (SMAs), which extend below the market and suggest a strengthened underlying uptrend.
The momentum fits this constructive tone, with the Relative Strength Index (RSI) at 73.4 moving deeper into overbought territory, while the Average Directional Index (ADX) near 36 signals an uptrend.
Upside, initial resistance appears at 102.00, where a horizontal barrier limits further gains before a more distant ceiling near 103.50. On the other hand, immediate attention is on the psychological level of 100.00 as first support, followed by a dense demand band formed by the 50-day SMA near 99.10, the 100-day SMA near 98.90 and the 200-day SMA at 98.77, with a deeper structural lower level only noticeable towards 97.50 if there is a sharper correction from overbought conditions.
(The technical analysis for this story was written with the lend a hand of an AI tool.)
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 | 0.42% | 0.49% | -0.02% | 0.36% | 1.30% | 0.78% | 0.21% | |
| EUR | -0.42% | 0.05% | -0.44% | -0.08% | 0.84% | 0.37% | -0.22% | |
| GBP | -0.49% | -0.05% | -0.47% | -0.11% | 0.81% | 0.32% | -0.26% | |
| JPY | 0.02% | 0.44% | 0.47% | 0.36% | 1.30% | 0.81% | 0.21% | |
| BOOR | -0.36% | 0.08% | 0.11% | -0.36% | 0.94% | 0.46% | -0.14% | |
| AUD | -1.30% | -0.84% | -0.81% | -1.30% | -0.94% | -0.45% | -1.10% | |
| NZD | -0.78% | -0.37% | -0.32% | -0.81% | -0.46% | 0.45% | -0.61% | |
| CHF | -0.21% | 0.22% | 0.26% | -0.21% | 0.14% | 1.10% | 0.61% |
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).
