Dollar Retreats 0.3% from 15-Month High Amid Iran Conflict and Fed Rate Hike Bets

The US Dollar Index (DXY) has retreated from its 15-month high of 101.5, reached on July 23rd, but still remains only 0.3% away from this milestone.

The index had halted at 101.3, as a slight decline in energy prices tempered expectations that the Federal Reserve could deliver a rate hike this month.

Energy inflation concerns were rekindled by the escalation of the US-Iran conflict, leading to blockades on energy tankers and subsequent increases in oil and fuel prices.

The combination of these inflationary risks with robust economic data has added leeway for higher interest rates.