U.S. Dollar Ticks Higher Amid Concerns Of Potential U.S. Attacks On Iran

(RTTNews) - The U.S. Dollar value inched higher on Monday with Middle East tensions rising after CNN reported that U.S. forces are preparing for a major operation against Iran. Traders also analyzed Iran's announcement of a Qatari delegation visiting Iran that kept up expectations for a diplomatic resolution to the crisis.

Today, the U.S. Dollar Index DXY, which measures the Greenback against a basket of other major currencies, was last seen trading at 102.01, up by 0.20 (or 0.20%).

The data released by the Chicago Fed National Activity Index released by the Federal Reserve Bank of Chicago revealed an increase to 0.07 in September from -0.08 in August, suggesting an increase in economic activity.

While against the Euro, the USD was trading at 1.118, up by 0.26%, against the GBP, the USD was trading at 1.334, up by 0.21%.

Against the USD, the Japanese Yen was trading at 157.491, down by 0.44%, and the Swiss Franc was trading at 0.828, down by 0.34%.

Against the USD, the Canadian Dollar was trading at 1.401, down by 0.08%. Data released by Statistics Canada today revealed that Canada's wholesale trade is set to have increased by 0.50% month-on-month in September, rebounding from a 1.60% decline in August. The recovery was largely fueled by higher sales in the machinery, equipment, and supplies subsector.

Against one unit of Australian Dollar, the USD was trading at 0.702, up by 0.24%.

Today, Iran's Foreign Ministry stated that a delegation from Qatar visited Iran on Sunday as part of ongoing negotiations with regional countries.

In addition, senior officials from Saudi Arabia, Turkey, and Pakistan (Mecca Defense Alliance) were in Iran for talks over regional security.

The Iranian delegation was headed by Mohsen Rezaei, Secretary of Iran's Supreme National Security Council.

Amid this, citing two officials, CNN reported that U.S. forces in the Middle East are preparing to launch fresh, potentially major military strikes against Iran "within 96 hours of receiving" an order from U.S. President Donald Trump.

Reportedly, the scope of the new operation would be big and would go beyond simply striking Iranian assets that can be quickly reconstituted.

The news appears to reconfirm last week's report by New York Times which stated that the U.S. and Israel may recommence attacks on Iran after the mid-term elections in the U.S. are over by the first week of November.

Aside from the U.S.-Iran crisis, the escalation of attacks on Saudi Arabia by Houthi militants is also keeping the Middle East tensions alive.

The Iran-backed militant group claimed striking an airport and oil facilities in Saudi Arabia on Saturday.

On Sunday, Saudi Arabia announced intercepting a fresh wave of missiles and drones targeting the nation.

The U.S. had already issued orders to selected U.S. diplomats and their family members to depart from Saudi Arabia.

On the monetary front, the U.S. Federal Reserve is set to announce its interest rates on Wednesday.

According to the CME Group's FedWatch Tool, currently investors are betting on a 10.50% chance of a 25-basis-point interest rate hike at the upcoming meeting of the Fed while the odds on the rates being held at the current level stand at 89.50%.

Analysts expect the Fed to leave the interest rates unchanged this month with their focus turning to key data releases for clues regarding the monetary policy outlook.