Dollar Choppy as Investors Weigh Oil Drop Against Rate Hike Prospects
The US dollar was trading in a narrow range on Tuesday as investors weighed the impact of declining oil prices against potential rate hikes from the Federal Reserve.
Oil prices fell more than 2% to a two-week low after Iran proposed reopening the Strait of Hormuz within seven days if the US eased military pressure, while the two countries hinted at reviving negotiations to end their conflict.
US President Donald Trump will use his UN General Assembly address to argue that the war with Iran prevented Tehran from obtaining a nuclear weapon and tout what he sees as progress toward peace and a global order aligned with American interests.
The ongoing US-Israeli war on Iran had sent oil prices higher, prompting rate hikes from several central banks in recent days, including the Federal Reserve. Recent comments from Fed officials have flagged the possibility of more rate increases if inflation does not cool.