2026.04.0213:29:11UTC+00Dollar Approaches 10-Month Highs Again

The dollar index climbed to 100.5 on Thursday, moving back toward the ten-month highs reached last week as fears of a renewed inflation spike resurfaced. Oil prices rallied after US President Trump vowed to take tougher action against Iran, without outlining specific measures to reopen the Strait of Hormuz. Crude remains near its highest levels since 2022, heightening concerns about its inflationary impact and the possibility that the Federal Reserve may adopt a more hawkish tone and postpone any rate cuts this year. Earlier in the week, Fed Chair Jerome Powell said policymakers might eventually need to respond to the economic fallout from the conflict, but not for now, noting that current policy is well suited to a wait-and-see strategy. Markets are presently pricing in no change to the federal funds rate for the remainder of the year. The dollar traded mostly higher against the British pound, the Australian dollar, and the euro.