23.03.202611:31:52UTC+00DXY Eases as Trump Delays Iran Strikes

The dollar index slipped to around 99.6 on Monday after President Donald Trump said he had instructed the Department of Defense to postpone all planned strikes on Iranian energy infrastructure for five days, citing productive discussions with Iran over the past two days. Although Tehran has not confirmed that such talks are taking place, the remarks indicate a possible opening for de-escalation. Oil prices fell sharply following the announcement, with WTI dropping more than 9% to below $90 per barrel and Brent sliding over 13% to under $97. Despite this pullback, earlier gains in energy prices continue to fuel inflation concerns, dampening expectations for near-term Federal Reserve rate cuts and even leading some traders to price in a potential rate hike later this year. Major central banks, including the Fed, ECB, BOE, and BOJ, have all kept rates on hold while signaling they are prepared to tighten policy further if inflation remains elevated.