2026.07.2815:53:33UTC+00US Dollar Eases from 15-Month High

The dollar index eased to 101.3 on Tuesday, retreating from a 15‑month high of 101.6 reached in the previous session, as softer energy prices tempered expectations for a Federal Reserve rate hike this year. US officials emphasized that a diplomatic solution with Iran in the ongoing conflict remains possible, prompting fuel prices to pull back from recent local peaks and reducing the perceived risk of renewed energy-driven inflation.

Even so, fuel prices remain high by historical standards, as exports from the Middle East are still subdued. Several FOMC members have recently indicated that persistently elevated inflation and signs of a resilient labor market could justify higher interest rates.

The Federal Reserve is widely expected to leave policy rates unchanged at its meeting tomorrow, though futures markets continue to price in the likelihood of at least one rate increase later this year. The US currency held recent gains against both the euro and the yen, while political uncertainty in the UK supported the pound’s recent appreciation.