23.04.202614:28:42UTC+00Dollar Near 2-Week Highs

The dollar index hovered around 98.6 on Thursday, holding near a two-week high as traders remained focused on the intensifying standoff between the US and Iran. Uncertainty over peace negotiations persists, and rhetoric on both sides remains heated.

In the latest developments, US President Trump ordered the US Navy to target any vessels laying mines in the Strait of Hormuz and pledged to step up efforts to secure the strategic waterway. The US continues to enforce a blockade on ships traveling to and from Iranian ports, while Tehran has effectively restricted international maritime traffic. As a result, oil prices remain well above pre-conflict levels, and activity in the Strait is largely at a standstill.

Meanwhile, the Federal Reserve is widely expected to leave the federal funds rate unchanged at next week’s meeting and for most of the year. Markets are currently pricing in a 26% probability of a 25-basis-point rate cut in December, down from earlier expectations of two rate cuts this year before the conflict escalated.