The dollar index hovered around 99.2 on Wednesday, holding on to gains from earlier in the week as stalled US–Iran peace talks and renewed tensions in the Middle East sustained safe-haven demand. According to US Central Command, Iran fired ballistic missiles toward neighboring countries, while US forces conducted strikes on Qeshm Island in response to attempted attacks by Tehran.
The ongoing conflict has kept energy prices elevated, stoking inflation concerns and strengthening expectations that interest rates may stay higher for longer. Reinforcing that outlook, data released on Tuesday showed US job openings surged in April to their highest level in nearly two years, while layoffs declined.
Investors are now awaiting private payrolls data due later on Wednesday, with attention also turning to Friday’s closely watched nonfarm payrolls report for additional guidance on the Federal Reserve’s policy path.
