Dollar Volatility Continues as Investors Weigh Oil Prices Against Fed Rate Hikes
The US dollar saw a slight increase on Tuesday, but its trajectory was choppy as investors weighed the decline in oil prices against the possibility of more rate hikes from the Federal Reserve.
Oil prices dropped by over 2% to a two-week low following Iran's proposal to reopen the Strait of Hormuz within seven days if the US eases military pressure. This development sparked hope for reviving negotiations between Iran and the US, with both countries' presidents set to address the UN General Assembly in New York.
Juan Perez, senior director of trading at Monex USA, attributed the market's volatility to ongoing concerns about inflation, which has been driven by the prolonged Iranian conflict. 'It's all due to the Iranian conflict going on so long, the escalation,' he said.