DXY Holds Near 100 as Geopolitics Trumps Optimism

The US Dollar Index (DXY) continues to hover around the psychological mark of 100.00, barely changing in value for the day.

This comes despite a modest uptick in Asian session trading and lingering optimism over a potential US-Iran peace deal, which has since faded after Iran denied any talks with the US.

Unconfirmed reports of drone strikes on US assets in Kuwait have prompted traders to factor in geopolitical risks, supporting the safe-haven status of the US Dollar (USD).

In related news, Mohsen Rezaee, a senior military adviser to Iran's Supreme Leader, warned that US vessels and forces could face 'serious risk and casualties' if the standoff over the strategic waterway continues.