24.04.202602:14:36UTC+00Dollar Set for Weekly Gain on Mideast Tensions

The dollar index hovered around 98.8 on Friday and was heading for its first weekly gain in three weeks, as stalled US–Iran peace efforts bolstered demand for the safe-haven currency. On Thursday, President Donald Trump stated in a social media post that he had ordered the US Navy to “shoot and kill” vessels laying mines in the Strait of Hormuz. The strategic waterway remains effectively closed, with both sides maintaining blockades, pushing energy prices higher and heightening inflation risks.

Meanwhile, the Federal Reserve is widely expected to leave the federal funds rate unchanged next week and for much of the year, as policymakers evaluate the impact of the Iran conflict on inflation and economic growth. Investors also reacted to comments from Fed nominee Kevin Warsh earlier this week, in which he pledged to safeguard the independence of monetary policy decisions.