The US Dollar Index recovers to near 99.00 as US-Iran talks collapse, dampening market sentiment.
Iran refuses to give up its nuclear ambitions.
Higher oil prices might force traders to raise hawkish Fed bets.
The US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.25% higher to near 99.00 during the European trading session on Monday. The US Dollar (USD) gains due to multiple tailwinds, such as risk-off market sentiment and reviving fears that the Federal Reserve (Fed) could raise interest rates this year.
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 Euro.
USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
USD | 0.33% | 0.28% | 0.26% | 0.04% | 0.20% | 0.12% | 0.13% | |
EUR | -0.33% | -0.08% | -0.06% | -0.28% | -0.15% | -0.20% | -0.16% | |
GBP | -0.28% | 0.08% | -0.02% | -0.23% | -0.08% | -0.14% | -0.13% | |
JPY | -0.26% | 0.06% | 0.02% | -0.26% | -0.10% | -0.17% | -0.09% | |
CAD | -0.04% | 0.28% | 0.23% | 0.26% | 0.19% | 0.10% | 0.09% | |
AUD | -0.20% | 0.15% | 0.08% | 0.10% | -0.19% | -0.05% | -0.00% | |
NZD | -0.12% | 0.20% | 0.14% | 0.17% | -0.10% | 0.05% | 0.04% | |
CHF | -0.13% | 0.16% | 0.13% | 0.09% | -0.09% | 0.00% | -0.04% |
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).
Market mood turns risk-averse as the first round of talks between the United States (US) and Iran has failed. US-Iran high-stakes talks collapse as Tehran refuses to surrender its intentions of building nuclear weapons.
In response, US President Trump has instructed the blockade of vessels entering and exiting from Iranian ports, which will begin from April 13, 10:00 AM (14:00 GMT).
The collapse of US-Iran talks has resulted in a significant recovery in the oil price. As of writing, WTI Oil price trades almost 8% higher to near $98.00.
Higher oil prices have de-anchored inflation expectations again, a scenario that might force traders to raise bets supporting interest rate hikes by the Fed again.
In late March, traders were pricing in two interest rate hikes by the Fed this year but priced out, following the announcement of a two-week ceasefire between the US and Iran.
Going forward, investors will focus on the US Producer Price Index (PPI) data for March, which will be released on Tuesday. The US headline producer inflation is expected to have grown at a faster pace of 4.6% Year-on-Year (YoY) against the preliminary reading of 3.4%.
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