27.03.202613:58:16UTC+00Dollar On Track to End the Week Higher

The dollar index held steady near 100 on Friday and is on track for a weekly gain of about 0.3%, supported by ongoing concerns over the war with Iran, rising oil prices, and their implications for inflation and growth. Oil is trading near its highest levels since 2022, with markets bracing for the conflict to extend into April as attacks continue across the Middle East. This is occurring despite US President Trump’s announcement of a 10-day pause on strikes against Iran’s energy infrastructure through April 6, intended to allow more time for negotiations. Some investors, however, worry that this period could also be used by the US to reinforce its military presence in the region. At the same time, traders have scaled back expectations for Fed rate cuts this year, even though the central bank still projects a single 25bps cut in 2026. The greenback strengthened mainly against the British pound and the Swiss franc, while remaining little changed versus the euro, the yen, and the Australian dollar.