Dollar Holds Firm Amid Ongoing Trade Tensions, Oil Price Rebound

The US dollar held firm against its major rivals as tensions between the US and Iran eased, lifting oil prices and boosting bets on higher interest rates from the Federal Reserve.

The greenback's resilience comes amid a backdrop of escalating trade tensions between the US and China, which have been weighing on investor sentiment in recent months. However, the latest developments suggest that investors are shifting their focus to more pressing concerns, including Iran's downed US drone and the subsequent military strikes.

Oil prices rebounded sharply after the US and Iran stepped back from the brink of war, with Brent crude rising 1.4% to around $71.50 per barrel. This has led some investors to raise their bets on higher interest rates from the Federal Reserve, as a stronger dollar tends to weigh on inflation expectations.