U.S. Dollar Ticks Higher Amid Concerns Of U.S.-Iran Conflict Re-escalation

(RTTNews) - The U.S. Dollar value edged higher driven by oil-driven inflationary concerns brought on due to the impasse in U.S.-Iran conflict and reports of a possible fresh military offensive by the U.S. on Iran. In addition, stronger-than-expected April month's consumer price data supported the U.S. dollar.

The U.S. Dollar Index, DXY, which measures the Greenback against a basket of other major currencies was last seen trading at 98.31, up by 0.35 (or 0.36%) today.

While against the Euro, USD was trading at 1.174, up by 0.38%, against the GBP, it was trading at 1.353, up by 0.52%.

Against the USD, the Japanese Yen was trading at 157.632, down by 0.32%; the Swiss Franc was trading at 0.780, down by 0.37%; and the Canadian Dollar was trading at 1.370, down by 0.17%.

Against one unit of Australian Dollar, USD was trading at 0.723, up by 0.159%.

The war between the U.S.-Israeli forces against Iran, currently under a ceasefire phase, entered day number 74 today.

Last week, the U.S. administration offered a proposal to Iran to end the U.S.-Israeli forces versus Iran war.

On Sunday, U.S. President Donald Trump rejected Iran's response as "totally unacceptable" and stated Iran was "playing games" with the U.S. for nearly 47 years, remarking that he will not allow it to happen anymore.

Later, Trump stated that he did not even finish reading Iran's documents fully and observed that the ceasefire with Iran now is on "a massive life-support".

Undeterred Iran stated that it will respond to "any aggression" by the U.S.

The dual blockades on the Strait of Hormuz, the first after Iran shut it soon after the war broke out, and the second after the U.S. enforced a naval blockade on Iranian ports, have slammed the brakes hard on global oil trade.

Trump also observed that the U.S.-Iran ceasefire is now on a "massive life-support".

With diminishing expectations of any breakthrough through a dialogue process, concerns of deeper escalation in the Middle East have increased.

As a result, crude oil prices soared further, and led by rising inflationary concerns, gold prices moved lower.

Citing aides close to Trump as sources, CNN reported that Trump is frustrated with Iran's attitude and is seriously planning to restart the military operations in Iran.

Trump is visitng China where he will meet President Xi Jinping and discuss various bilateral issues along with the ongoing gulf crisis.

Refuting claims that Iranian enemy is strong to defend, Trump reasserted his previous stance that their navy is gone with every single ship resting at the bottom of the sea, and added that their air force and technology are all "gone" with the country economically on the brink of disaster.

Currently, analysts have pinned their expectations on this upcoming meeting to find any resolution to the U.S.-Iran conflict as China has close friendly and business ties with Iran.

On the economic front, the Small Business Optimism Index released by the National Federation of Independent Business today held steady at 95.90 in April.

Indicating that job growth remained stable during the second half of April, the Automatic Data Processing Research Institute revealed that private employers in the U.S. added an average of 33,000 jobs per week over the four weeks ending April 25, up from the 30,250 weekly gain in the prior period.

U.S. Bureau of Labor Statistics revealed that core consumer prices, (excluding food and energy) rose by 0.40% from the previous month in April, exceeding market expectations of a 0.30% increase.

The annual core inflation rate (excluding food and energy) rose to 2.80% in April from 2.60% in the previous month.

Consumer prices increased by 0.60% month-over-month in April, in line with market expectations, following a 0.90% surge in March.

The annual inflation rate in accelerated to 3.80% in April, the highest since May 2023, and compared to 3.3% in March.

The Consumer Price Index (CPI) increased to 333.02 in April from 330.21 in March.