The US Dollar Index (DXY) gains on Monday as heightened tensions in the Middle East fuel demand for the safe-haven dollar. At the time of writing, the index, which tracks the dollar against a basket of six major currencies, is trading around 100.95 after recovering from an intraday low of 100.65.
US President Donald Trump wrote on Truth Social on Monday: “Every time Iran kills an American soldier, it will pay for that killing many times over!” His comments came as the United States carried out a ninth consecutive night of attacks on Iran.
Tensions rose further after Reuters reported that Yemen’s Iran-allied Houthis declared an immediate naval blockade against Saudi Arabia, raising fresh concerns about regional transport and energy supplies.
However, diplomatic channels remain open. Reuters reported that mediators proposed a 10-day break in strikes to explore ways to revive the U.S.-Iran interim agreement. Officials from both countries also signaled they were still open to negotiations.
Oil prices saw acute two-way swings as markets reacted to conflicting news reports. West Texas Intermediate (WTI) crude oil prices are around $82 after rebounding from the daily low of $79.48 and remain close to the highest level in over a month.
The rebound in oil prices keeps the risk of energy-led inflation elevated and supports expectations that the Federal Reserve (Fed) may raise interest rates later this year.
According to the CME FedWatch Tool, markets assign a 63% probability of a Fed rate hike in September. The possibility of tighter monetary policy coupled with demand for the US dollar during times of geopolitical stress keeps DXY supportive.
The economic calendar in the US is relatively silent this week. Preliminary jobless claims data will be released on Thursday, and preliminary data for the July Purchasing Managers’ Index (PMI) will be released on Friday.
As Fed officials observe the blackout period before making a policy decision next week, the dollar will take cues mainly from developments in the Middle East.
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 Swiss franc.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.19% | 0.10% | 0.05% | 0.26% | -0.31% | -0.06% | 0.32% | |
| EUR | -0.19% | -0.07% | -0.15% | 0.05% | -0.51% | -0.28% | 0.13% | |
| GBP | -0.10% | 0.07% | -0.09% | 0.13% | -0.45% | -0.20% | 0.18% | |
| JPY | -0.05% | 0.15% | 0.09% | 0.23% | -0.35% | -0.07% | 0.28% | |
| BOOR | -0.26% | -0.05% | -0.13% | -0.23% | -0.56% | -0.30% | 0.03% | |
| AUD | 0.31% | 0.51% | 0.45% | 0.35% | 0.56% | 0.27% | 0.65% | |
| NZD | 0.06% | 0.28% | 0.20% | 0.07% | 0.30% | -0.27% | 0.36% | |
| CHF | -0.32% | -0.13% | -0.18% | -0.28% | -0.03% | -0.65% | -0.36% |
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).
