DXY Rebounds as Iran Tensions Ease, Fed Rate Hike Expectations Dampen

The US Dollar Index (DXY) rebounded on Friday, climbing back above the 100.00 psychological mark as tensions in Iran eased.

This came after a three-day losing streak that saw the index hit its lowest level since June 17 on Thursday.

The decline was attributed to the temporary truce in the Iran war, which led to lower gas prices and dampened expectations for an immediate interest rate hike by the US Federal Reserve (Fed).

However, volatile crude oil prices amid the US-Iran standoff suggest that inflation remains a concern.