DXY Tumbles to Near 101.00 as US-Iran Strike Halt Eases Geopolitical Tensions

The US Dollar Index (DXY) has fallen to near 101.00 after the US-Iran strike halt, which eased geopolitical tensions.

Following a weekend pause in military hostilities between the two countries, market participants are cautious about potential supply disruptions after Iran-backed Houthis in Yemen claimed responsibility for attacks on Saudi Arabian facilities along the Red Sea.

The Federal Reserve is widely expected to hold interest rates steady on Wednesday before resuming rate hikes in September.

Investors are closely watching upcoming economic indicators, including advance Q2 GDP data and PCE inflation figures, for further insight into the underlying strength of the economy.