The dollar index slipped just below 100 on Thursday, struggling to extend earlier gains after the US military announced it had completed its latest strikes on Iran. That development raised hopes that peace negotiations could resume, reducing safe-haven demand for the greenback. Earlier, US forces had launched new attacks on Iran after President Donald Trump accused Tehran of stalling talks over an interim peace agreement.
At the same time, US consumer inflation accelerated in May to its fastest pace in more than three years, driven largely by surging energy costs, though the figure was in line with market expectations. Traders modestly pared back their forecasts for additional Federal Reserve rate hikes this year, though a quarter-point increase in December remains fully priced in. Investors are now looking to upcoming producer inflation data and weekly jobless claims for further signals on the Fed’s policy outlook.
