2026.04.0608:01:28UTC+00Dollar Index Slips Below 100 as Early Gains Fade

The dollar index gave up early gains and slipped below 100 on Monday, as traders responded positively to reports that Iran, the US, and regional mediators are discussing a potential 45-day ceasefire that could lay the groundwork for ending the war. Additional news that more ships are transiting the Strait of Hormuz helped ease pressure on oil prices, providing some short-term relief. This comes against the backdrop of President Trump’s threat to begin targeting Iran’s power plants on Tuesday, while Iran continues to strike energy infrastructure in neighboring Gulf states. Investors are now looking ahead to a series of key economic releases, including this week’s CPI report and the FOMC minutes, for further insight into the economy’s health. Markets have fully priced in a pause in the federal funds rate later this month and anticipate that borrowing costs will remain unchanged for the rest of the year.