U.S. Dollar Advances Amid Looming High U.S. Interest-Rate Concerns

(RTTNews) - The U.S. Dollar value edged higher for the fourth consecutive session as concerns of a high interest rate in the near term overshadowed the progress in U.S.-Iran talks and the resumption of shipping traffic across the Strait of Hormuz.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 101.38, up by 0.37 (or 0.37%) today.

In the U.S., the data on private sector employment by Automatic Data Processing showed a rise by a weekly average of 30,750 jobs in the last four weeks up to June 6.

While against the Euro, USD was trading at 1.138, up by 0.41%, against the GBP, it was trading at 1.320, up by 0.36%.

Against the USD, the Japanese Yen was trading at 161.590, down by 0.02%.

In Japan, the S&P Global Japan Manufacturing Purchasing Managers' Index increased to 54.90 in June 2026, according to S&P Global and Services PMI Business Activity Index rose to 51.80 in June from 50.00 of the previous month.

Against the USD, the Swiss Franc was trading at 0.809, down by 0.21%; and the Canadian Dollar was trading at 1.421, down by 0.40%.

Against one unit of Australian Dollar, USD was trading at 0.691, up by 1.22%.

Last week, the U.S. Federal Reserve announced maintaining the interest rates at the current level of 3.50% to 3.75%, in line with expectations.

In his address following the announcement, the new Fed Chair Kevin Warsh sounded hawkishly and termed the persistent high prices a burden for households.

The reading of Fed's Dot Plot showed that nearly half of monetary policy officials expect at least one rate increase before this year end. While nine projected at least one hike, six suggested multiple hikes.

Economists have drawn attention to the fact that many of the hawkish projections have come from non-voting officials. However, investors have started pricing in rate hikes in the next meeting.

With rate cut expectations currently off the table, investors are looking for the upcoming personal consumption expenditures price index for further indications on the Fed's trajectory.

According to CME Group's FedWatch Tool, investors are betting on a 36.30% chance of a quarter-basis-point interest rate hike in the upcoming Fed's meeting on July 28-29.

Last Wednesday, a Memorandum of Understanding was signed between U.S. President Donald Trump and Iran's President Masoud Pezeshkian to extend the current ceasefire for 60 days and discuss critical issues causing hostility.

Following the signing of the MoU, Iran reopened the Strait of Hormuz, and the U.S. lifted the naval blockade it imposed on ships entering or exiting Iranian ports.

Since the signing, momentum returned across the Strait of Hormuz with ships carrying oil beginning to move out of the gulf region to their respective destinations.

U.S. Vice President JD Vance who headed the U.S. negotiators in the first round of peace talks in Switzerland announced that Trump wants the U.S. to turn a new leaf with Iran.

Hinting at the progress, today Trump messaged via Truth Social that 19 million barrels of oil flowed out of the Hormuz Strait on Monday.

Iran's IRNA news quoted Deputy Foreign Minister Kazem Gharibabadi who led the Iran's technical negotiating team as stating that the technical talks concluded with an agreement on arrangements for future negotiations.