Dollar Index Holds 100-100.50 Range as GBP/USD Hits $1.3211 Low
U.S. Dollar Index held within 100-100.50 as GBP/USD slumped to an intraday low of $1.3211 near its 52-week trough of $1.2721, driven by escalating Middle East tensions and elevated energy prices. Traders await March FOMC minutes and Friday’s CPI reading for further direction.
1. Dollar Index Gains on Geopolitical Uncertainty
Geopolitical risks tied to a looming White House deadline in the U.S.-Iran conflict have boosted demand for the U.S. dollar, keeping the Dollar Index firm within a 100-100.50 range.
2. Sterling Slumps Near 52-Week Trough
The pound weakened to $1.3234 early ET, touching an intraday low of $1.3211 as the dollar drew support from elevated energy prices and conflict-driven safe-haven flows, with its 52-week trough at $1.2721.
3. U.S. Economic Data Underpins Greenback
A stronger-than-expected March jobs report and flat Fed rate expectations have reinforced dollar strength, with investors now focused on March FOMC minutes and Friday’s CPI reading, which may alter rate-hike pricing.
4. Broader Currency and Central Bank Outlook
The euro traded around $1.1544 with pared ECB rate hiking bets, while central banks in Central Europe are expected to hold rates, and the Reserve Bank of New Zealand is widely forecast to maintain a 2.25% policy rate.